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COMPLETE   SYSTEM 


OF 


PRACTICAL  BOOK-KEEPING. 


EXEMPLIFIED  IN 


SIX  SETS  OF  BOOKS : 


JOURNALIZED  DAILY,  WEEKLY,  AND  MONTHLY;    BY  SINGLE  AND  DOUBLE  ENTBY.- 
APPLICABLE  TO  ALL  KINDS  OF   BUSINESS,  BOTH 


INDIVIDUAL  AND  PARTNERSHIP  CONCERNS. 

ACCOMPANIED   WITH   THE   VARIOUS   FORMS  OF 

BILLS,    MERCANTILE    LETTERS,   ETC, 

IN  DAILY  USE  IN  THE  COUNTING  ROOM. 

AN 

INTEREST  AND  TIME  TABLE; 

ALSO, 

A  SERIES  OF  CONCISE  RULES 

FOR  PERFOUMINO 

VARIOUS  COMPUTATIONS  IN  BUSINESS. 

Designed  for  the  Counting  House  and  ScJiools. 

BY  NICHOLAS  HARRIS,  A.  M. 

PRINCIPAL    OF   THE    HARTFORD    COMMERCIAL    ACADEMY.  * 


THIRD   EDITION. 


HARTFORD. 
BROWN    AND    PARSONS. 

p.  J.  HUNTINGTON  AND  CO.,  NEW-YORK. W.  MARSHALL  AND  CO., 

PHILADELPHIA. 

1841. 


< 


Entered  according  to  Act  ofCoiigrcss,  in  the  year  1839,  by 

NICHOLAS   IIA11UI». 
In  Jhe  Clerk's  Office  of  tlie  District  Court  of  Connecticut. 


Stertotyped  by  Richard  H.  Hobbs. 


Printed  by 

CASE,  TIFFANY,  &  Co. 

Hartforb,  Conn. 


INTRODUCTION. 


The  major  part  of  young  men  in  our  country,  are,  to  some  extent, 
accountants  ;  and  if  required  to  keep  accounts  at  all,  they  should  be 
able  to  do  it  in  a  manner  intelligible  to  themselves  and  to  others.  While 
almost  every  branch  of  education  is  thoroughly  taught  in  our  schools 
and  colleges,  the  commercial  education  of  young  men  is  almost,  or 
quite  neglected ;  and  this  too,  when  many  youth  enter  those  institu- 
tions vi^ith  the  design  of  following  mercantile  pursuits  after  they  are 
graduated.  Indeed,  no  class  of  individuals  has  had  less  helps  to  qualify 
themselves  for  their  business  previously  to  entering  upon  it,  than  mer- 
chant's clerks. 

Every  business  man  should  be  entirely  acquainted  with  the  princi- 
ples of  Double-Entry,  that  he  may  classify  and  conduct  his  accounts  in 
such  a  manner  as  will  disclose  to  himself  and  to  others,  (if  need  be) 
the  true  state  of  his  affairs.  By  Single-Entry,  the  merchant  cannot 
trace  out  the  changes  through  which  his  property  has  passed  ;  and 
though  he  may,  by  picking  up  the  odds  and  ends,  ascertain  what  his 
property  is  worth,  he  is,  nevertheless,  unable  to  tell  on  what  branches 
of  his  business,  (if  it  is  extensive)  he  has  realized  his  gains.  For  a 
person  who  is  receiving  money  for  rents,  for  dividends  on  stocks,  for 
freight  of  ships,  and  for  merchandise,  it  is  important  that  he  keep  an 
account  with  each  of  these  branches  of  his  business,  that  he  may  know 
what  part  of  his  property  nets  him  the  most  per  cent.  With  such  in- 
formation before  the  mind,  the  judicious  will  withdraw  his  capital  from 
the  unproductive,  and  invest  it  more  in  the  productive  branches  of  his 
business.  x\nd  hence  the  necessity  of  separate  accounts  with  ships^ 
cotton,  flour,  real-estate,  &c. 

By  previous  preparation,  it  is  evident  that  young  men  may  engage  in 
mercantile  pursuits  with  many  advantages  ;  and  it  is  therefore  highly 
important  that  they  have  access  to  a  work  on  the  science  of  accounts, 
so  systemized,  so  simple,  and  still  so  comprehensive,  as  to  give  all 
requisite  information  The  author  would  not  say,  or  even  insinuate, 
that  there  are  not  ably  written  works  on  this  subject,  or  claim  an  excess 
of  originality  in  the  arrangement  or  matter  of  this  ;  yet  it  being  the  re- 
sult of  much  experience  and  study,  he  hopes  it  embodies  as  many 
merits,  at  least,  as  any  Book-keeping  in  print.  By  carefully  noticing 
the  questions  of  his  pupils,  the  author  has  been  able  to  learn  on  what 
points  the  most  difficulty  is  encountered,  and  has  consequently  dwelt 
upon  those  parts  more  minutely. 

111834 


4  INTRODUCTION. 

The  first  set  of  books  in  Single-Entry,  is  arranged  in  the  simplest 
form  possible,  showing  merely  the  Day-Book  entries,  and  the  transac- 
tions there  recorded,  posted  to  the  Ledger. 

The  second  set,  supposes  the  merchant  to  begin  business  with  a  given 
capital,  to  continue  the  same  for  three  months,  when  the  Balance- 
sheet  is  taken,  and  a  statement  of  affairs  made  out.  There  is  a  new 
Ledger  made  from  the  old  one,  with  all  the  balances  ctirned  forward. 

In  Part  L,  there  is  also  a  great  variety  of  forms  of  letters,  bills,  &c., 
with  the  Statute-Laws  regulating  the  damages  on  protested  bills,  &c., 
explained. 

In  Part  IL,  the  theory  and  practice  of  Double-Entry  is  introduced 
and  exemplified  in  four  sets  of  books,  with  Trial-Balances,  Balance- 
sheets,  the  method  of  taking  them,  &;c.,  fully  explained. 

The  first  set  records  the  business  of  one  person  during  one  month, 
where  all  the  cash  and  other  transactions  are  found  on  the  Day-Book, 
which  is  the  simplest  form  of  keeping  accounts  by  Double-Entry.  At 
the  close  of  the  month  the  business  closes,  the  Balance-sheet  is  taken, 
and  the  accounts  are  equilibrated. 

Set  II.,  records  the  retail  business  of  one  individual  for  four  weeks, 
in  which  the  transactions  are  journalized  once  a  week,  and  posted  to 
the  Ledger  accordingly.  The  small  cash  sales  made  through  the  week, 
are  entered  at  the  close  of  each  week,  in  one  sum,  which  is  done  on 
Saturday  night,  when  the  cash  is  balanced.  This  is  a  safe  and  judi- 
cious plan  for  the  retailer  to  adopt  in  keeping  his  accounts. 

Set  III., records  a  partnership  business,  of  three  individuals  continued 
four  months.  This  set  has  a  Cash-Book,  on  which  all  the  cash  trans- 
actions are  entered,  and  from  which  each  sum  is  posted  to  the  Ledger. 
There  is  connected  with  the  same,  a  Private-Ledger,  aside  from  the 
one  in  daily  use,  which  i€  kept  by  the  partners,  and  which  shows  how 
much  each  partner  has  invested  in  the  business,  the  sum  which  each 
has  withdrawn  from  the  concern,  and  finally,  how  much  has  been  the 
net  gain  or  loss  on  the  business,  when  a  statement  of  affairs  was  made. 

It  is  not  designed  to  make  this  work  an  Arithmetic,  or  a  substitute 
for  one  ;  yet  it  is  deemed  exceedingly  important  that  a  few  concise 
rules  for  performing  various  computations  in  business,  with  suitable  ex- 
amples, be  annexed.  They  have  accordingly  been  entered,  with  other 
important  information,  in  the  third  Part. 

There  will  be  found  immediately  after  the  Bill-Book,  Set  III.,  a  variety 
of  original  entries,  in  the  form  of  a  Day-Book,  which  advanced  classes 
may  write  into  Blank-Books,  journalize,  and  post.  The  Trial  and  Bal- 
ance-sheets will  be  found  in  connection  with  the  Day-Book. 

A  valuable  Time  and  Interest  Table,  with  a  Dictionary  of  Commer- 
cial terms,  &c.,  will  be  found  in  the  third  Part. 


ADVERTISEMENT 

TO    THE    STEREOTYPE    EDITION. 


The  favorable  reception  which  the  former  edition  of  this  work  has 
found  in  the  mercantile  community,  and  its  introduction  into  many- 
Academies  and  Schools  through  the  States,  have  induced  the  author  to 
carefully  revise,  correct,  enlarge,  and  prepare  for  the  press,  the  present 
edition. 

In  the  arrangement  of  this,  every  thing  particularly  important  in  the 
first  edition  is  retained,  with  decided  improvements  in  the  mode  of 
journalizing  and  ruling  the  books,  which,  more  than  any  thing  else, 
lessen  the  labor  of  the  Book-keeper. 

There  will  also  be  found,  in  addition,  another  set  of  books,  Set  I., 
by  Double-Entry,  entirely  changed  from  the  former ;  many  new  exam- 
ples for  making  Journal-entries ;  the  Statute-Laws  of  the  different  States, 
regulating  the  damages  and  interest  on  protested  bills  ;  a  condensed 
and  valuable  Interest  Table  ;  a  Time  Table, -and  a  Table  showing  the 
weight  and  value  of  gold  coins,  fixed  by  the  Acts  of  Congress  in  1834. 

In  consequence  of  the  importance  which  the  study  of  Book-keeping 
is  assuming  in  all  good  schools,  particular  regard  has  been  had  to  adapt 
the  arrangement  and  matter  of  the  whole  book  to  the  convenience  of 
teachers,  to  the  wants  of  classes,  and  to  facilitate  individual  instruc- 
tion. 


THE  AUTHOR. 


CONTENTS, 


Page. 
PART  I. 

Introduction, :     :       3 

Hints  to  Teachers, "7 

Questions  on  Book-keeping,    ...       9 
Books,  Set  I.,  Single-Entry,    ...     14 
Books,  Set  II.,  Single-Entry  and  Bal- 
ance-sheet,        19 

Ledger  B.,  Single-Entry,       ...     38 

Check-Book, 41 

Account  Sales-Book,  .....  42 
Account  Current-Book,      ....     43 

Book  of  Shipments, 44 

Invoice-Book, 45 

Letter-Book, .46 

Questions  on  foreign  and  inland  Bills,  51 
Forms  of  Due-Bills,  Receipts,  Notes, 

Bills  of  Exchange,  &c.       ...     56 
Statute  Laws  of  the  States  in  regard  to 

damages  on  Protested  Bills,     .     .     60 
Form  of  Protest,  act  of  honor,  Power 
of  Attorney,  Lease,  Bill   of  Sale, 
Bond,  Mortgage,  &c.,  from  .     63  to  68 
PART  II. 
Remarks  on  Book-keeping  by  Double- 
Entry,    71 

Rules  for  Journalizing,  ....  73 
Questions  on  Journalizing  and  general 

rules, 78 

Questions  on  the  nature  and  design  of 

Ledger-Accounts, 79 

Duties  on  Imported  Goods,  ...  84 
Company-Accounts — Company  A,  .  86 
Rules  for  Opening  Books,       ...     88 

Introductory  Exercise, 95 

Books,  Set  I.,  Double-Entry, .  .  .100 
To  open  and  close  a  set  of  Books,      .  110 


Page 
Trial-Balance,  general  directions  for 

taking  it, -.119 

Profit  and  Loss-sheet,  general  direc- 
tions to  make  it, 121 

Balance-sheet,  general  directions  to 

make  it, 124 

Directions  to  equilibrate  accounts,  .  128 
Rules  to  Journalize  weekly,    .     .     .132 

Books,  Set  II, 136 

Weekly  Journal, 144 

Balance-sheets,. 154 

Copartnership  of  three  indivkluals,  .  155 
Contract  of  Copartnership,  .  .  .  156 
Books,  Set  III— Cash  and  Day-Books,  158 

Daily  Journal,  Set  III., 168 

Monthly  Journal,  Set  III.,  .     .     .     .176 

Inventory,  Set  III., 180 

Monthly  Trial-Balances,  Set  III.,  194 
Balance-Sheet,  Set  III.,  .  .  .  ,196 
Private-Ledger,  Set  III.,    .     .     .     .198 

Bill-Book,  Set  III., 200 

Books,  Set  IV.,  and  Balances,  .  .  203 
Method  of  keeping  Bank-Books,  .     .  205 

British  Stocks, 208 

Interest  Tables, 211 

Tables  of  Gold  Coins, 214 

Pound  Sterling, 315 

Time  Table, 216 

Equating  Time  of  Payments,  .  .  217 
Equation  of  Dividends,  ....  222 
Loss  and  Gain,   .......  222 

Cubic  Measure, 224 

Draft  and  Tare, 220 

Commercial  Dictionary,     ....  227 

Prospectus  of  School, 231 

Testimonials, 232 


HINTS   TO  TEACHERS. 


As  the  design  of  those  who  pursue  the  study  of  Book-keeping  is  to 
make  it  useful  to  themselves  in  actual  business,  or  in  teaching  it  to  others, 
it  is  highly  important  that  they  begin  with  the^r^^  principles.  Individual 
instruction  is  generally  preferable  to  teaching  in  classes,  but  as  that 
method  is  not  practicable  in  ordinary  schools,  classes  must  necessarily 
be  formed,  and  consequently  such  a  course  must  be  pursued  by  the 
teacher  as  will  best  meet  the  wants  of  the  whole.  To  the  classes,  the 
teacher  should  explain  the  object  of  Book-keeping,  the  importance  of 
keeping  accounts  systematically  and  correctly — should  tell  them  that 
ignorance  on  this  subject  is  generally  the  cause  of  insolvency  among 
business  men,  and  that  no  portion  of  a  business  man's  time  is  more  pro- 
fitably spent  than  that  bestowed  upon  his  books — that  this  science  is  im- 
portant, not  only  to  the  merchant,  the  lawyer,  and  the  physician,  but  is 
a  great  accomplishment  to  any  class  of  individuals  ;  that  the  theory  is 
beautiful,  and  the  practice  useful,  and  that  both  may  be  acquired  under  a 
competent  instructor,  sooner  than  in  any  other  situation.  The  teacher 
should  also  illustrate  the  peculiarities  of  Double  and  Single-Entry  Book- 
keeping ;  in  what  the  difference  between  the  two  methods  consists,  and 
the  decided  preference  which  the  former  has  over  the  latter.  Such, 
and  similar  suggestions,  usually  awaken  in  the  mind  of  the  learner  an 
interest,  which,  in  this,  as  in  other  branches  of  education,  is  indispensa- 
ble to  success. 

The  questions  and  answers  on  pages,  9,  10,  and  11,  may  now  be 
studied  and  recited  to  the  teacher,  after  which  he  may  suppose  pur- 
chases and  sales  of  goods,  and  show  his  class  how  he  would  record  such 
transactions  on  the  Day-Book — what  accounts  would  necessarily  be 
opened  in  the  Ledger,  in  order  to  post  those  Day-Book  entries,  and 
how  such  accounts  should  be  closed,  when  payment  is  made. 

The  class  should  be  made  familiar  with  the  language  in  which  any 
business  transaction  is  recorded,  remembering  that  conciseness  and 
perspicuity  are  highly  important  in  making  the  original  entries.  This 
familiarity  may  be  acquired  by  recording  a  variety  of  business  trans- 
actions, on  the  black-board  or  blank-books,  by  the  pupil,  and  the  cor- 
rection be  made  by  the  teacher. 

The  Day-Books,  Set  I.  and  II.,  Single-Entry,  may  now  be  copied,  if 
deemed  expedient  by  the  teacher,  into  blank-books,  and  afterward 
posted  and  the  accounts  balanced.  It  will  not  be  well  to  dwell  longer 
upon  the  process  of  Single-Entry,  but  pursue  the  principles  and  prac- 
tices of  Double-Entry ;  for  a  competent  knowledge  of  the  latter,  implies 
an  understanding  of  the  former,  except  some  few  particulars. 

The  class  may  now  take  lessons  to  advantage  in  Part  II.,  and  be  care- 
fully drilled  on  the  explanation  of  the  Ledger-Accounts  (pages  79  to 


8  HINTS  TO  TEACHERS. 

86,)  the  method  of  journalizing  (pages  71  to  78,)  the  process  of  open- 
ing books  (pages  88  to  96,)  and  all  the  matter  preceding  Books,  Set  I., 
ou  which  pertinent  questions  will  be  found. 

Too  much  stress  cannot  be  laid  upon  the  importance  of  understanding 
the  object  of  the  accounts  in  the  Ledger,  for  on  the  arrangement  of  this 
Book  are  deduced  the  principles  of  journalizing.  Hence  the  folly  of 
making  a  Ledger  under  the  direction  of  a  series  of  arbitrary  rules.  I 
have  never  known  a  person  become  a  practical  Book-keeper,  who  would 
use  keys  and  such  nonsense.  The  instruction  in  a  school  should  cor- 
respond as  nearly  as  possible  to  that  given  in  a  counting-house,  and  what 
merchant  would  be  so  foolish  as  to  teach  his  clerk  to  keep  books  by  the 
direction  of  arbitrary  rules ! 

The  supposed  transactions  beginning  on  page  73,  and  concluded  on 
page  78,  may  be  given  to  a  class,  for  several  lessons,  to  be  written  out 
in  a  narrative  style,  full  and  concise,  on  loose  paper  or  slate.  When  the 
class  comes  together,  each  may  be  required  to  read  aloud  the  record  as 
he  has  it,  after  which,  if  necessary,  they  may  be  corrected,  punctuated, 
and  in  some  cases  journalized  and  posted.  The  learner  should  at  least 
tell  how  to  do  the  same.  The  writer  finds  such  a  course  highly  use- 
ful in  teaching  Book-keeping. 

Day-Book,  Set  L,  (page  101)  may  now  be  copied  into  blank-books, 
which  the  class  may  rule  with  red  or  black  ink,  (if  they  have  not  books 
ready  ruled)  ruling  the  lines  in  the  same  way  as  found  in  i\ie printed  hook. 

After  copying  the  Day-Book,  the  learner  may  journalize  the  same 
on  a  slate  or  sheet  of  paper,  referring  to  the  explanation  of  Ledger- Ac- 
counts, beginning  on  page  79  for  rules  to  make  the  Journal-entries. 

The  Journal-entries  made  as  directed,  may  now  be  examined  by  the 
teacher,  or  compared  with  the  printed  Journal,  and  if  con-ect,  they  may 
be  written  out  on  the  ruled,  blank  Journal. 

It  is  not  so  important  that  the  learner  make  the  Journal-entries  inde- 
pendently, (although  that  is,  in  most  cases  well,)  as  to  understand  the 
principles,  and  give  a  reason  for  journalizing  the  transactions  one  way 
rather  than  another.  The  sooner  the  principles  involved  are  compre- 
hended, the  better,  as  the  pupil  may  now  give  his  time  to  acquiring  a 
facility,  correctness  and  neatness  in  writing  up  his  books  ;  which  is  the 
practical  part  oi^odk-kee'^iwg,  and  which  is  generally  the  g  and  deside- 
ratum. 

The  class  should,  before  going  further,  be  carefully  questioned  on 
the  principles  of  making  Journal-entries,  posting  &c. 

The  name  of  every  person  and  thing,  which  is  found  on  the  Journal, 
must  be  written  in  the  Ledger,  in  large  hand,  to  which,  under  their 
respective  heads,  all  the  sums  must  be  transferred,  or  posted. 

The  Trial-Balance,  the  Profit  and  Loss,  and  Balance-sheets,  may  be 
successively  made  out  according  to  the  directions  given  on  pages  119 
to  127,  which  are  full  and  lucid. 

Each  of  the  accounts  in  the  Ledger  may  now  be  added  and  equili- 
brated as  per  directions.  The  learner  will  derive  great  advantage  from 
writing  out  the  several  sets  of  books,  in  so  far  as  it  gives  him  not  only 
the  theory,  but  the  practice  of  keeping  accounts,  and  soon  familiarizes 
him  with  the  whole  process  of  opening,  conducting,  and  closing  books. 


BOOK-KEEPING 


QUESTIONS  AND  ANSWERS. 

1 .  What  is  meant  by  Book-keeping  ? 

Book-keeping  is  the  art  of  recording  transactions  in  trade,  in  a 
concise  and  perspicuous  manner,  so  as  to  show  the  sum  and  all 
parts  of  the  merchant's  property. 

2.  Is  there  more  than  one  method  of  keeping  accounts  ? 
There   are  two  methods  ;  one  by  Single  and   the  other  by 

Double-Entry. 

3.  What  is  the  distinction  between  the  two  ? 

In  Single-Entry,  the  item  recorded  in  the  Day-Book,  is  entered 
but  once  in  the  Ledger. 

EXAMPLE. 

Should  I  sell  John  Brown,  on  account,  goods  amounting  to 
$100,  I  should  first  record  it  on  the  Day-Book,  and  then  post  (or 
place)  $100  to  the  Dr.  or  left  hand  side  of  John  Brown's  account 
in  the  Ledger.     Hence,  Single-Entry. 

In  Double-Entry,  each  sum  is  entered  in  the  Ledger,  at  two  or 
more  accounts. 

EXAMPLE. 

If  I  sell  John  Brown  merchandise  on  account,  amounting  to 
$100,  I  post  the  $100  to  the  Dr.  or  left  hand  side  of  John  Brown's 
account,  also  $100  on  the  Cr.  or  right  hand  side  of  the  merchan- 
dise account,  in  the  Ledger.     Hence,  Double-Entry. 

4.  Which  plan  is  best  adapted  to  a  small  business  ? 
Single-Entry  is  commonly  preferred  for  a  small  business,  as  it 

saves  some  writing,  especially  if  it  be  a  retail  business;  yet  eve- 
2 


10  BOOK-KEEPING. 

ry  departure  of  the  merchant  from  Double-Entry,  will  produce 
.uncertainty  in  his  affairs.  The  method  of  Single-Entry  being 
the  more  simple,  will  occupy  the  first  part  of  this  treatise. 

5.  What  is  the  ultimate  design  in  recording  transactions  in 
trade  ? 

That  the  merchant  may  at  any  time  ascertain  his  gain  or  loss 
on  business,  and  in  what  his  property  consists. 

6.  In  Single-Entry,  what  Books  are  necessary  to  accomplish 
that  end  ? 

The  Day-Book,  in  the  beginning  of  which  is  to  be  recorded  a 
minute  and  concise  statement  of  the  Merchant's  or  Tradesman's 
affairs  when  he  commences  business  ;  a  history  of  his  debts  and 
effects,  and  afterward  a  record  of  what  individuals  have  bought 
or  received  of  the  Merchant,  and  of  what  the  Merchant  has 
bought  or  received  of  individuals  on  account. 

The  Ledger,  in  which  the  Merchant,  devoting  one  page  to  each 
person  with  whom  he  has  transactions  in  trade,  and  writing  his 
name  in  large  round  hand  at  the  top  of  the  page,  posts  to  the  Dr. 
side,  all  sums  which  the  individual  owes  him,  and  on  the  Cr.  side 
posts  all  sums  which  he  has  had  of  the  individual,  on  account. 

In  addition  to  the  above  Books,  may  be  introduced  the  Journal, 
Cash-Book,  Bill-Book,  Book  of  Shipments,  Account-Current- 
Book,  Letter-Book  and  Invoice-Book,  depending  much  on  the  na- 
ture of  the  business.  When  the  Journal  is  used,  it  is  only  a  neat- 
er and  more  concise  form  of  the  Day-Book,  and  instead  of  posting 
from  the  Day-Book,  the  items  are  taken  from  the  Journal,  to  the 
Ledger. 

7.  Is  it  essential  in  what  order  the  accounts  are  opened  in  the 
Ledger  ? 

The  stock  account  should  appear  on  the  first  page,  after  which, 
the  order  is  not  important  in  Single-Entry. 

8.  Having  the  accounts  opened  on  the  Ledger,  (with  one  or 
two  on  a  page,  as  may  be  expedient)  how  does  the  Book-keeper 
next  proceed  1 

He  posts  the  accounts  ;  which  is  simply  collecting  the  items 
of  each  account,  as  they  have  been  recorded  in  the  Day-Book  or 
Journal,  and  placing  the  same  under  their  respective  heads,  in  order 
to  show  the  state  of  each  account,  after  these  entries  are  posted. 


QUESTIONS    AND    ANSWERS.  11 

9.  Is  it  necessary  to  have  any  reference  figures,  from  the 
Ledger  to  the  Journal,  and  vice  versa  ? 

It  is  frequently  important  to  refer  from  one  Book  to  the  other, 
and  to  facilitate  the  matter,  the  folio  of  the  Ledger  where  the  entry 
is  made,  is  placed  in  the  marginal  column  of  the  Journal ;  and  in 
the  Ledger,  the  folio  of  the  Journal  whence  the  item  was  taken. 
See  Journal  and  Ledger,  Set  1st.,  Double-Entry. 

When  the  Ledger  is  made  from  the  Day-Book,  reference  figures 
must  be  placed  on  the  Day-Book  and  Ledger. 

10.  Does  any  business  require  more  than  one  Ledger  ? 
Manufacturers  frequently  keep,  besides  the  principal  Ledger, 

a  Petty-Ledger,  on  which  they  enter  the  names  of  their  workmen, 
to  whom  they  are  paying  small  sums  of  money,  or  to  whom  they 
are  trusting  stock,  and  from  which  they  transfer  the  total  of  cash, 
merchandise,  &c.  to  the  principal  Ledger.  This  method  keeps 
the  large  Ledger  neater,  saves  labor  in  taking  the  Trial-Bal- 
ance, &c. 

1 1 .  When  is  an  account  said  to  be  closed,  and  when  equilibra- 
ted or  balanced  ? 

In  adding  two  sides  of  an  account,  when  the  one  side  is  equal 
to  the  other,  the  account  is  said  to  be  closed ;  when  the  sides  are 
unequal,  requiring  on  the  smaller  side,  the  diiference  to  make  it 
equal,  the  account  is  said  to  be  equilibrated. 

12.  Why  and  how  are  Books  compared  ? 

The  design  of  comparing  Books  is  to  ascertain  whether  the 
items  have  been  correctly  transferred  from  the  Journal  to  the 
Ledger ;  and  this  is  the  best  accomplished,  by  one  person  reading 
the  folio  of  the  Ledger  from  the  Journal,  giving  the  amount,  date, 
&c.  while  another  turns  to  that  account  in  the  Ledger,  and  find- 
ing it  correctly  posted,  marks  it  with  a  dot,  thus  . 

13.  Should  errors  be  found  in  posting,  how  are  they  correc- 
ted ? 

When  an  item  has  been  overlooked,  carry  it  to  its  proper  ac- 
count as  Sv>o)i  ;  s  discovered,  placing  on  the  margin  an  x  where 
the  item  is  posted,  and  another  where  it  should  have  been  posted. 
When  an  item  is  carried  to  wrong  account,  place  the  same 
amount  on  the  opposite  side  by  or  to  error,  with  an  x  against 
each,  on  the  margin — so  when  a  wrong  sum  has  been  posted,  or 
when  carried  to  the  wrong  side  of  an  account. 


REMARKS. 

The  following  short  set  of  Books,  the  Day-Book  and  Ledger, 
exhibits  the  simplest  form  of  keeping  accounts  which  can  be  adop- 
ted, where  any  degree  of  accuracy  is  required.  It  may  answer 
for  a  farmer  or  mechanic  who  has  but  little  occasion  to  record  his 
business  transactions,  but  if  the  business  is  at  all  important  the 
2nd.  set  of  books  should  have  the  preference. 

It  will  be  seen  that  the  Stock,  Cash  and  other  accounts,  are  not 
opened  in  this  Ledger,  and  only  the  names  of  the  persons  who  are 
trusted  appear.  There  are  some  individuals  who  keep  a  Day- 
Book  or  a  Ledger  alone,  but  a  man's  business  must  be  very  small 
to  require  only  one  book  to  record  it. 

When  a  person  becomes  indebted  to  the  owner  of  the  Books, 
for  goods,  for  labour,  or  for  any  cause,  the  owner  of  the  Books 
makes  record  of  the  same  on  his  Day-Book,  and  then  writes  the 
person's  name  in  the  Ledger,  under  the  Dr.  side  of  which,  he  writes 
the  amount  which  the  person  owes  him.  When  the  person  pays 
any  thing,  the  owner  of  the  Books  posts  or  writes  the  sum  which 
he  receives  of  the  person  under  the  Cr.  side  of  his  account.  Thus 
the  diiference  between  the  Dr.  and  Cr.  column  shows  how  much 
one  owes  the  other.  If  the  Dr.  side  is  the  largest,  the  balance  is 
in  favor  of  the  owner  of  the  Books  ;  and  vice  versa. 


DAY-BOOK  AND  LEDGER, 

Set  I. 
SINGLE-ENTRY. 


DAY-BOOK SET    I. 


15 


Hartford,  January  1,  1838. 


Jan.  1 


Joseph  Carter Dr 

To  12  pounds  of  Sugar,    .     .     .     -Q)  9  cts. 


John  Woodbridge,  .  . 
To  16  pounds  of  Coffee, 
To  9       "       "     Sugar 


.  Dr 

11  cts. 


Joseph  Carter, Cr. 

By  one  day's  labour, 


John  Spring, .    Dr, 

To  1  load  of  Wood,    ....... 


Judah  Brown, Dr. 

To  1  piece  Cotton  Goods  20  yds.  ^  20  cts, 
1  pair  thick  Boots,         , 


John  Woodbridge, 
To  Shoeing  Horse,      .     . 
"  Setting  Waggon  Tire, 


Dr, 


Joseph  Carter,     .    .     . 

To  2  Bushels  of  Com, 

«  4         "       "  Oats, 


Dr. 


75  cts. 
34  cts. 


John  Woodbridge, Cr. 

By  Cash, 


08 


76 

72 


48 


00 


50 


00 
00 


00 


00 
00 


00 


86 


250 


16 


DAY-BOOK SET   I. 

Hartford,  January  \st^  1838. 

Elijah  Sharpe,         Dr. 

To  8  galls.  Molasses,  .     .     .     .  -S)  30  cts. 
'«  1  bbl.  of  Apples, 

Judah  Se3Tiiou];,     .......   Dr. 

To  1  pair  of  Pants, 

"  1  Vest 

Elijah  Sharpe,         Dr. 

To  4  reams  of  Paper,  .     .     .     .      -Q)  4,00 

Judah  Brown, Cr. 

By  Cash,       

John  Woodbridge, Dr. 

To  1  Hat 


1838. 
Jan.  4 


40 
50 


00 
00 


90 


22 


16 


00 


00 


00 


50 


LEDGER SET  I. 


17 


Hartford,  January  1,  1838. 


Dr, 


Joseph  Carter, 


Cr. 


1838 
Jan. 


To  Sugar, 
To  Grain, 


Jan.    2 


By  Labor, 


It  will  be  seen  that  Joseph  Carter  has  purchased  Goods  at  two  different  times,  amounting  to 
$3  94,  and  has  paid  in  labor  $1  00,  leaving  him  in  debt  (o  the  owner  of  the  Books  $2  94. 


Dr. 


John  Woodbridge, 


Cr. 


Jan. 


To  Sundries, 
To  Labor,  . 
To  Hat,    .    . 


Jan.    3 


By  Cash, 


50 


The  Dr.  column  of  this  account  shows  that  J.  Woodbridge  owes  the  owner  of  the  Books 
$10  98,  and  the  Cr.  side  shows  that  he  has  paid  $2  50,  leaving  a  balance  against  Woodbridge 
of  8  48.  


Dr. 


John  Spring, 


Cr. 


1838 
Jan.    2   To  Wood, 


J.  Spring  is  indebted  $3  50  to  the  owner  of  the  Books,  and  when  he  pays  the  whole  or  apart 
of  the  same,  his  account  will  be  credited  for  the  sum  he  pays. 


18 


LEDGER — SET  I. 


Hartford,  January  1,  1838. 


Dr. 


JuDAH  Brown, 


Cr. 


Jan.    2     To  Sundries, 


00      Jan.    6  By  Cash 


6  00 


Judah  Brown  has  purchased  to  the  amount  of  $6  00,  which  he  afterward  pays ;  conse- 
quently the  account  has  the  same  sum  on  each  side,  and  is  closed.  When  an  account  is  set- 
tled,  the  Dr.  and  Cr.  side  must  be  equal. ■ 


Dr. 


Elijah  Sharpe, 


Cr. 


Jan.    4 


To  Sundries, 
To  Paper,     . 


Dr. 


JuDAH  Seymour, 


Cr. 


Jan.    4    To  Clothing, 


Note.    These  accounts  are  not  equilibrated,  as  in  the  next  Ledger  ;  for  the  object  here  is  to 
show  the-mode  of  posting,  rather  than  of  equilibrating  the  accounts. 


PETTY  CASH-BOOK, 

SINGLE-ENTRY. 


REMARKS 

ON  THE  SUCCEEDING  SET  OF  BOOKS. 

L  The  succeeding  set  of  Books  'shows  a  simple  method 
of  keeping  accounts  by  Single-Entry,  which  may  be  adopted 
by  individuals  doing  a  small  or  retail  business.  In  connection 
with  the  Day-Book,  on  which  are  recorded  all  the  transactions 
except  the  daily  sales,  is  a  Cash-Book,  called  generally  the  Petty 
C  ash-Book,  in  the  Dr.  column  of  which  are  entered  the  amounts  of 
money  taken  through  the  day  for  goods  sold,  and  in  the  Cr.  column 
all  sums  paid  for  postage,  cartage,  clerk-hire,  &c.  the  balance  of 
which  is  carried  to  the  Day-Book,  weekly,  and  called  "  Sales  this 
week." 

2.  The  form  of  the  Petty  Cash-Book,  as  kept  by  the  Merchant 
for  the  first  two  weeks,  is  given,  showing  the  plan  on  which  the 
accounts  were  kept  during  the  three  months. 

The  cash  transactions  are  recorded  on  the  Day-Book,  as  if  no 
Principal  Cash-Book  were  kept.  The  form  of  such  Cash-Book, 
nowever,  is  given,  which  may  be  used  if  desirable,  and  when 
tised,  the  sums  of  Cash  received  must  be  entered  on  the  Dr.  page, 

td  the  sums  paid  away  entered  on  the  Cr.  page,  so  the  difference 
tween  the  Dr.  and  Cr.  column  will  be  the  amount  of  cash  on 
Jiand.  When  such  Cash-Book  is  used,  the  cash  transactions  do 
hot  appear  on  both  Cash  and  Day-Book,  as  in  Set  2,  but  only  on 
the  Cash-Book. 


PETTY  CASH-BOOK SET  II. 


21 


Hartford,  January  1,  1838. 

1838. 

Dr. 

Cr. 

Jan.    2 

To  Merchandise,     .     sales  this  day. 

.     .    95 

00 

«       3 

By  Coal,    ....     paid  H.  Brainar 
To  Merchandise,     .     sales  this  day, 

.     .    91 

00 

9 

00 

"       4 

a                u                                    u            it         <( 

.     .  125 

00 

"       5 

By  Stationer}',     .     .     pr.  receipt,    . 
To  Merchandise,     .     sales  this  day. 

.     .    80 

00 

5 

00 

"       6 

By  Postage,  ...     5  Letters, 
To  Merchandise,     .     sales  this  day, 

'.     !  124 

00 

1 

00 

Balance  entered  Cash-Book^  page  1 

500 

00 

/ 

515 

00 

515 

00 

Jan.    8 

To  Merchandise,     .     sales  this  day. 

.    70 

00 

"       9 

By  charges  on  goods,  pr.  Bunker  Hill, 
To  Merchandise,     .     sales  this  day. 

.     !    60 

00 

10 

00 

o  o 

By  Postage,  ...     3  Letters, 
To  Merchandise,     .     sales  this  day. 

.*    80 

00 

50 

"     12 

By  Board,  &c.  .     .     pr.  receipt,     . 
To  Merchandise,     .     sales  this  day. 

'.    50 

00 

20 

00 

"     13 

By  Porterage,    .     .     on  goods. 
To  Merchandise,    .     sales  this  day. 

.     75 

00 

4 

50 

Balance  entered  Cask-Book,  page  1 . 

300 

00 

'                                   ' 

335 

00 

335 

00 

CASH  AND  DAY-BOOK, 

Set  II. 
SINGLE-ENTRY. 

D.   BOND. 


24 


CASH-BOOK SET    Tl 


Dr. 


Hartford,  January  1,  1838. 


1838. 

Jan.  1 
"  6 
'•  13 
"  20 
"  26 
"     28 


Feb. 


To  Stock, 
**  Merchandise, 


se,       . 

.     sales  this  week,     , 

(( 

((            (( 

u 

u           u 

n 

((            (( 

u 

"          *' 

ilai 

r.   1 

u 

10 

(( 

12 

ii 

15 

u 

18 

(( 

29 

li 

u 

(( 

30 

(( 

31 

To  Balance,         .     .     . 
"  Merchandise,      .     . 

«  I.  M.  Hall,     .     \     '. 

"  Reynolds  &  Morris, 
"  Merchandise,      .     . 


from  last  month, 
sales  this  week, 

a         li  a 

on  ciccount, 

((        li 

sales  this  week. 


To  Balance,         .     .     .  from  last  month 

"  Wm.  H.  Imlay,  .     .  on  account, 

"  Merchandise,      .     .  sales  this  week 

"  Reynolds  &  Morris,  on  account, 

"  H.  L.  Miller  &  Co.,  «       " 
"  Wm.H.  Imlay,  .     .       "       " 

"  Merchandise,     .     .  sales  this  week, 
"  Reynolds  &  Morris,  on  account, 

"  Charles  Sheldon,    .  "         "         . 


100000 
50000 
30000 


175 


25 


45000 


300 


00 


2725 


2595 
700 
300 
75 
100 
800 
700 


25 


25 
00 
00 
00 
00 
00 
00 


527025 


3740 
50 


25 
00 


70000 

5000 

100000 


12 


00 


80000 


350 
150 


6852 


25 


CASH-BOOK SET    II. 


25 


Hartford,  January  1,  1838. 


Cr. 


1838    I 

Jan.    8  By  Charles  Sheldon 
"     31 


on  account, 


"  John  Reed,      .     .     .     .     "         " 

"  Balance, to  next  month, 


Feb.  14 
"     16 

"     28 


Mar.  1 
"  8 
"  13 
"     31 


By  Stewart  &  Co., 
"  Bills  Payable, 
"  Balance,    .     . 


on  account,  .  . 
J.  Olmsted  &  Co., 
to  next  month,     . 


2725  25 


10000 

3000 

259525 


50 

1480 


374025 


By  Bills  Payable,      . 

"  J.  Olmsted  &  Co. 
"  Balance,        .     . 


Stewart  &  Co., 
on  account. 


5270 


100 

500 

300 

5952 


00 
00 


25 


00 
00 
00 
25 


6852 


25 


26 


SINGLE-ENTRY §ET  II. 


1                            Hartford,  January  1,  1838. 

1838 
Jan.     1 

3 

5 
6 

6 

8 
10 

12 
13 

Have  on  hand,  commencing  business, 

Cash,        1  000 

6,000 

304 
16 

416 
500 
100 

6 

30 
300 

00 

50 
00 

00 
00 

75 

00 
00 

Merchandise,     .          5,000 

Bought  of  Charles  Sheldon, 

2  pieces  Cloth,  42  yds.,  blue,  -S)  5  00  .  210 
1       "         "       21  "  black,  -0)4  50  .     94  50 

Bought  of  Jolin  Olmsted  &  Co., 

16  yds.  Carpeting,     ....  -8)  1  00     .     . 

Sold  Catlin  &  Co., 

20  pieces  Linen,  500  yds.  ^  ,83  1-3    .     .     . 

Cash  sales  of  Merchandise,  this  week,      .     .     . 

Paid  Charles  Sheldon,  Cash  on  account,     .     . 

Sold  Wm.  H.  Imlay, 

1  piece  Muslin,  9  yds.     .     .     -O)  ,75     . '   .     . 

Sold  H.  L.  Miller  &  Co., 

4  pieces  Cambric,  60  yds.  .      -0)  ,50     .     .     . 

Cash  sales  of  Merchandise,  this  week,      .     .     . 

SINGLE-ENTRY — SET   II. 


27 


Hartford,  January  15,  1838. 


1838 
Jan.  15 


17 


20 


22 


24 


26 


27 


30 


31 


Catlin  &L,  Co.  have  accepted  my  draft  on  them  at 
10  days  sight,  due  Jan.  27,  for       .... 


Sold  I.  M.  Hall, 

3  pieces  quilting,  42  yds.    -8)100     .     42  00 
"      "      S.  Cloth,  20  "     .  -a  5  00     .  100  00 


Cash  sales  of  Merchandise  this  week, 


Bought  of  Stewart  &  Co.,  New- York, 

6  pieces  Silk,  200  yds.  .     -S)   1  00      200  00 
11      «     Cambric,  200  yds. -8)       20.     40  00 


Sold  H.  L.  Miller  &  Co., 

4  pieces  S.  fine  Cloth,  84  yds.     tD  4  00 


Cash  sales  of  Merchandise  this  week. 


Received  payment  of  CatUn  &  Co.,  for  Bill,  in 
Cash, 


Accepted  Stewart  &  Co's.  Draft  on  me,  at  30 
days,  payable,  March  1st,  for        .... 


Paid  J.  Reed,  Cash  on  account, 


30000 


142 


00 


17525 


24000 


336 


450 


300 


20000 


3000 


00 


00 


00 


>  ^  'i 


J- 


28 


SINGLE-ENTRY SET    II. 


-  V  ■ 


yr^ 


<; 


[^-iC*** 


# 


Hartford,  Jarmary  31,  1838. 


1838 
Jan    31 


Feb.  1 


Sold  Reynolds  &  Morris,  Springfield, 

6  pieces  Ginghams,  168  yds.  ti)  25,  42  00 
1  piece  S.  fine  Cloth,  22  "  S)  6  00,  132  00 
4  pieces  Cassimer,    120  "     -0)  2  00,  240  00 


February. 


Bought  of  Stewart  &d  Co. 
1  piece  Silk,  75  yds. 


1  00 


Sold  I.  M.  Hall, 

1  piece  Silk,  50  yds.  . 


1  50 


10 


Bought  of  John  Olmsted  &  Co., 

lpieceS.F.Cloth,100yds.O10  00,  1,000  00 
2  pieces  Cambric,  200  "     ^       40,        80  00 

4    "    snk,      400  "   n  1  00,    400  00 


414 


00 


75 


00 


Cash  sales  of  Merchandise,  this  week, 


Sold  H.  L.  Miller  &  Co., 

1  piece  Broadcloth,  50  yds.      U  12  00 


Accepted  John  Olmsted  &  Co.'s  Draft  on  me,  at 
30  days,  for 


11  Sold  Rejniolds  &  Morris, 

1  piece  S.  fine  Cloth,  40  yds.    -0)  6  00 


7500 


1,480 


700 


600 


00 


00 


00 


1,480 


00 


24000 


SINGLE-ENTRY SET    11. 


29 


Hartford,  February  12,  1838. 


1838 
Feb.  12 


12 


13 


Bought  of  Stewart  &  Co., 

1  piece  Silk,  50  yds.     .     '9)  1  00 
1     "      Cambric,  100  yds. -S)       50 


50  00 
50  00 


Cash  sales  of  Merchandise,  this  week,       .     . 


14 


14 


16 


Sold  I.  M.  Hall, 

3  pieces  Linen,  100  yds.  -Q)  2  00 
1  piece  Silk,        50    "    ^  2  00 


200  00 
100  00 


Paid  Stewart  &  Co.,  Cash  on  account, 


100 


300 


Received  from  J.  M.  Hall,  Cash  on  account. 


Paid  John  Olmsted  &  Co.'s  Draft  on  me, 


17 


18 


Received  from  Reynolds  &  Morris,  Cash  on  ac- 
count,       


00 


00 


300  00 


50 


75 


00 


00 


s://. 


d.i^ 


1,480  00 


18 


Sold  H.  L.  Miller  &  Co., 

1  piece  S.F.  Cloth,  100 yds. -0)1 2  00   1,200  00 
1     "     Cambric,      50  "     ^        50        25  00 


100 


00 


4  'r^ 


Accepted  Stewart  <fc  Co.'s  Draft  on  me,  due 
March  1st,  for 


C* 


1,225 


100 


00 


00 


30 


SINGLE-ENTRY SET    II. 


Hartford,  February  18,  1838. 


,  l< 


^■> 


i^j^. 


1838 
Feb.  19 


r    20 


^^. 


21 


^: 


25 


27 


28 


Mar.  1 


Cash  sales  of  Merchandise,  this  week, 


Sold  Reynolds  &  Morris, 

1  piece  of  Silk,  50  yds.     ©    2  00       100  00 
1     ."      S.  F.  Broadcloth,    ....    300  00 


Bought  of  Stewart  &  Co. 

2  pieces  Silk,  200  yds.       '&}  1  00       200  00 
5      "      Cambric,  600  yds. -8)      50       300  00 


Accepted   Stewan  &   Co.'s   Draft  on  me,   due 
March  8th. 


Bought  of  John  Olmsted  &  Co., 

100  yds.  Carpeting,       .     .     f?)  2  00 


80000 


40000 


500 


500 


•00 


Cash  sales  of  Merchandise,  this  week,       .     .        700 


Li^^ 


0 


March. 
Paid  Stewart  &  Co.'s  Bill  on  me. 


Sold  Charles  Sheldon, 
50  yds.  Carpeting, 


f()  2  00 


Sold  Wm.  H.  Imlay, 
1  piece  Linen,  25  yds. 


^2  00 


100 


00 


00 


00 


00 


00 


10000 


50 


00 


SINGLE-ENTRY — SET  II, 


31 


Hartford,  March  6,  1838. 


1838 
Mar.   6 


10 


12 


13 


15 


18 


20 


Bought  of  H.  L.  Miller,  &  Co., 

.    1  case  Broadcloth,  100  yards,  ®    5  00 


Bought  of  John  Olmsted  &  Co., 

10  yards  Broadcloth,  .     .     .     -Q)  7  00    70  00 

IVest, 3  00 

1  piece  Carpeting,  75  yds.  .    -8)  2  00  150  00 


Paid  Stewart  &  Co.'s  Bill  on  me. 


Received  from  Wm.  H.  Imlay,  Cash,  on  account 


Cash  sales  of  Merchandise,  this  week, 


Paid  John  Olmsted  &  Co.,  Cash,  on  account. 


Received  from  Rejmolds  &  Morris,  Cash,  on  ac 
count 


Received  from  H.  L.  Miller  &  Co.,   Cash,-  on 
account, 


Sold  Charles  Sheldon, 
5  yards  Broadcloth, 


.  Q)  10  00 


50000 


223 


500 


50 


700 


300 


50 


1,00000 


50 


00 


00 


00 


00 


00 


00 


00 


^X^.C^^v 


''{^ 


fC 


M 


% 


CQi^ 


f  ^ '  \ 


32 


SINGLE-ENTRY SET    II. 


Hartford,  March  25,  1838. 


7^ 


-^^j;^ 


1838 
Mar.  25 


28 


Sold  H.  L.  Miner  &  Co., 

1  piece  Carpeting,  100  yds.         '0)  3  00     .     . 


cp:.f 


;2. 


t^ie^-^ 


29 


29 


30 


^<J         31 


Sold  Wm.  H.  Imlay, 

1  piece  Cambric,  25  yds.   .     'S)  1  00     . 


Received  fromWm.  H.  Imlay,' Cash  on  account 


Cash  sales  of  Merchandise,  this  week. 


Received  from  Reynolds  &  Morris,  Cash  on  ac- 
count        


Received  from  Charles  Sheldon,  Cash  on  account, 


300 


25 


12 


00 


00 


00 


80000 


1 00 


15000 


LEDGER  A. 


Set  II. 


SINGLE-ENTRY 


D. BOND 


34 


LEDGER SET    II. 


Dr. 


Stock. 


Cr. 


1838- 
Mar.    31 


To  Balance,  Ledger  B, 


7,697 


Jan. 
Mar. 


By  Cash,  .  .  . 
B^  Ai^rcliaudi.e, 
By  Net  gain, 


The  Cr.  side  of  Stock  shows  how  much  property  D.  Bond  carries  into  business,  viz.  $1000 
Cash  ;  $5000  in  Merchandise.    On  the  same  side  is  the  gain  on  the  business,  $1,697 


1 
1 

1,000 

1 

5,000 

1,697 

7,697 

^ 

R, 

r&J 

(^ 

Sn 

q 

3SS, 

viz.  $10 

Dr. 


Cash. 


Cr. 


1838 

Jan. 

1 

(( 

6 

« 

13 

« 

20 

« 

an 

u 

27 

Feb. 

0 

12 

« 

16 

a 

17 

" 

19 

« 

28 

Mar. 

10 

12 

« 

15 

« 

18 

(( 

29 

« 

« 

30 

(( 

31 

To  Stock,         ,     ,     . 
To  Merchandise,  .    , 
To  Merchandise,  .    . 
To  Merchandise,  .    . 
To  Merchandise,  .    . 
To  Bills  Receivable, 
To  Merchandise,  .     . 
To  Merchandise,  .    . 
To  I.  M.  Hall,  .    .    . 
To  Reynolds  &  Morris- 
To  Merchandise,      .     , 
To  Merchandise, 
To  Wm.  H.  Imlay,  . 
To  Merchandise,  .    . 
To  Reynolds  &  Morris 
To  H.  L.  Miller  &  Co., 
To  Wm.  H.  Imlay,  . 
To  Merchandise,   .     . 
To  Reynolds  <fc  Morris 
To  Charles  Sheldon. 


l,Of)r 
500 
300 
175 
450 
300 
700 
300 

75 
100 
800 
700 

50 
700 

50 
1,000 

12 
800 
350 
150 


Jan. 


Feb. 


8 
31 
14 

"  16 
March  1 
"  8 
"  13 
"      31 


By  Charles  Sheldon, 
By  John  Reed,  . 
By  Stewart  &  Co. 
By  Bills  Payable, 
By  Bills  Payable, 
By  Bills  Payable, 
ByJohnOlmsted&Co., 
By  Balance,  Led.  B, 


8,512 


This  account  is  not  commonly  opened  in  a  Ledger  kept  by  Single-Entry,  and  may,  at  the  op- 
tion of  the  Book-keeper,  be  dispensed  with  ;  yet  it  being  but  little  trouble  to  keep  it  as  above,  it  is 
recommended.  The  Dr.  side  shows  the  receipts,  and  the  Cr.  side  the  payments ;  consequently 
the  difierence  of  the  two  sides  is  the  cash  on  hand. 


Dr. 


John  Reed. 


Cr. 


1833 
Ian.    31  To  Cash, 


30  00   Mar    31  By  Balance,  Led.  B, 


J.  Reed  owes  the  Balance  to  D.  Bond,  $30  00. 


30  00 


LEDGER SET    II. 


35 


Dr. 


John  Olmsted  &  Co. 


Cr. 


1838 
Feb.     10 
Mar.    13 

"      31 


To  Bills  Payable, 
To  Cash,  .  .  . 
To  Balance.  Led.  B, 


I    ! 

1,480  00 

300  00 
139  00 ! 


Jan. 
Feb. 


Mar. 


27 


By  Merchandise, 
By  Merchandise, 
By  Merchandise, 
By  Merchandise, 


16 


1,919 


The  debit  side  oi"  this  account  shows  how  The  credit  side  of  this  account  shows  how 
I  much  John  Olmsted  &  Co.  have  received  of  the  'much  John  Olmsted  «fc  Co.  have  paid  the  own- 
I  owrier  of  the  Boolis.  I  ^er  of  the  Books. 

!  The  Cr.  side  being  the  greatest,  the  ovsTier  of  tlie  Boolis  owes  John  Olmsted  <fe  Co.  the  differ- 
I  ence  of  the  two  sides,  $139.  If  the  Balance  were  on  the  other  side,  John  Olmsted  «&  Co.  would 
I  owe  the  owner  of  the  Books  that  Balance.    The  same  is  true  of  all  personal  accounts.  


Dr. 


Catlin  &  Co. 


Cr. 


Ian.      6  To  Merchandise, 


416 


Jan.     15 
Mar.    31 


JJy  Bills  Receivable 
By  Balance,   Led.  B, 


416 


Catlin  Sc  Co.  have  given  D.  Bond,  on  the  26tli  Jan.  their  note  for  $300,  for  which  lie, credited 
their  account.  By  this  act  they  have  paid  him  $300  on  hook  account,  though  they  are  responsi- 
ble Ibr  the  face  of  the  note  wlien  he  presents  it  due,  or  when  any  person  presents  it  dne^  to  whom 
he  may  liavs  soUl  it.     Th^i  balance,  J^llfi  66,  Ciitlin  &  Co.  owe  D.  Bond  on  book  ac-'unt. 


Dr. 


H.  L.  Miller  &  Co. 


Cr. 


1S38     I 
.Tan.     12!  To  Merchandise, 


Feb. 
Mar. 


To  Merchandise, 
To  M-^irchandise, 
To  Merchandise, 
To  Merchandise, 


30 
336 
600 
1,225 
300 


2,491 


OOllMar. 
00, 
00 1 
001 
00, 

00 1 


6  By  Merchandise, 


By  Cash,  .... 
By  Balance,  Led.  B 


500100 

1,000  00 

901,00 


2,491 


Dr. 


I.  M.  Hall. 


Cr. 


1838 
.Tan.   17 
Feb.    2 

"      13 


To  Merchandise, 
ToMcrcliandise, 
To  Merchandise. 


14200 

75  00 

300  00 


Feb. 16 
Mar.  31 


By  Cash,       .    .    . 
By  Balance,  Led.  B, 


517 


I.  M.  Hall  owes  the  owner  of  the  Books  $442. 


36 


LEDGER SET    II. 


Dr. 


Reynolds  &  Morris. 


Cr. 


1838 
Jan     31 
Feb.    11 

"      20 


To  Merchandise, 
To  Merchandise, 
To  Merchandise, 


414 
240 
400 


1,054 


Mar 


By  Cash, 
By  Cash, 
By  Cash, 


31  By  Balance,  Led.  B, 


Dr. 


Kt;vnoid.s  &  Morris  owe  D.  Bjnd  ^ho  Ba!ancn,  $.'j:)4. 


Charles  Sijeldon. 


554  00 


,054  00 


Cl 


1838'  1 

Jan       8  To  Cash,     .     .     .     . 

Pilar.  2 1  To  Merchandise, 
"  9''  To  Merchandise, 
"     31  To  Balance    Led.  B 


100  00 

looloo 

50  00 
204  50 


454  50 


Jan. 
Mar. 


By  Merchandise, 
By  Cash,  .     .     . 


D.  Bond  owes  Charles  Sheldon  the  Balance,  .^204  .'50 


304.50 

150 '01^ 


Dr. 


Stewart  &  Co. 


1838     i 
Jan.     30  To  Bills  Payable,      . 

14  To  Cash,     .    .    .    . 

15  To  Bills  Payable,  . 
".-ilTo  Bills  Payable,  . 
31  To  Balance,  Led.  B, 


Feb. 


Mar. 


200  00 
50  00. 

101  00! 

500 1 00 
65  00i 

915  03 


Jan.    22i  By  Merchandise, 
Feb.      ijBy  Merchandise. 
12  By  Merchandise, 
By  Merchandise, 


21 


D.  Bond  owes  Stewart  &  Co.  the  Balance,  $65  00. 


Cr. 


I 

4 
5 

240 
75 

100 

5'JO 

915 

Dr. 


Wm.  H.  Imlay. 


Cr. 


1338 
.Ian.     10 
Mar.     3 

"     £8 


To  Merchandise, 
To  Merchandise, 
To  Merchandise, 


Mar.    10 

"      29 
"      31 


By  Cash, 
By  Cash, 
By  Balance, 


Wm.  H.  Imlay  owes  D.  Bond  $19  75. 
This  Ledger  is  made  from  the  Day-Book,  having  each  item  posted  separately. 


BALANCE-SHEET. 


37 


Dr. 

BALANCE-SHEET. 

Cr. 

1838 

Mar.   31 

Cash,    .... 

5,95225 

John  Olmsted, 

139 

00 

J.  Reed,     .     .     . 

30001 

Charles  Sheldon, 

204 

50 

Catlin  &  Co.,      . 

116 

66 

Stewart  &  Co., 

65 

00 

Wm.  H.  Imlay,  . 

19 

75 

Stock,     .     .     . 

7,697 

16 

H.  L.  Miller  &  Co., 

991 

00 

I.M.  Hall,      .     . 

442 

00 

Reynolds  &  Morris, 

554 

00 

8,105 

66 

8,105 

66 

This  is  a  statement  of  D.  Bond's  affairs  on  March  31st.,  1838; 
the  debit  side  showing  the  cash  on  hand,  and  all  the  debts  owing 
to  him;  and  the  credit  side,  the  debts  which  D.  Bond  owes  to 
other  individuals.  The  Merchandise  all  having  been  disposed  of, 
D.  Bond's  property  is  composed  of  cash  and  debts,  which,  after 
his  own  debts  are  canceled,   will  amount  to  7,697  16 

The  amount  carried  into  business,  in  Mdse.,         5,000 

Cash,         1,000 

6,000 


Leaving  a  gain  on  his  business  of       .....     1,697  16 

Stewart  &  Co.'s  Draft  for  $200,  due  March  1st.,  being  paid  in 
Merchandise,  no  account  of  it  was  made  on  the  Day-Book. 

The  Balance-Sheet,  after  being  proved  correct,  should  be  co- 
pied into  the  Ledger,  directly  after  the  accounts  now  equilibrated. 

The  Balance-Sheet  should  also  be  preserved  and  kept  in  the 
Safe  or  with  the  cash  in  the  Cash-Depository,  that  the  merchant, 
in  case  his  Books  should  be  destroyed,  could  refer  to  this  and 
learn  the  state  of  his  affairs  when  the  Books  were  last  balanced. 

At  the  balancing  of  the  Books,  the  Merchant  must  have  taken 
account  of  the  stock  unsold,  before  he  can  find  the  gain  or  loss  on 
his  business  since  last  balancing  the  Books. 


38 


LEDGER   B- 


Dr. 


Stock. 


Cr. 


1838 
April     1  By  Balance,  Led.  A,    .    1      7697  16 


Dr. 


Cash. 


Cr. 


April     1 


To  Balance,  Led.  A, 


5952 


Dr. 


John  Reed. 


Cr. 


April     1  To  Balance,  Led.  A,     .    l  30  00 


Dr. 


John  Olmsted  &  Co. 


Cr. 


April     1  By  Balance,  Led.  A,    .    2        139  00 


Dr. 


Catlin  &  Co. 


Cr. 


April     1  To  Balance,  Led.  A,    .   2         116  60 


Dr. 


H.  L.  Miller  &  Co. 


Cr. 


April     1  To  Balance,  Led,  A,     .    2        991  00 


«It  will  be  seen  that  the  Balance  of  each  account  on  Ledger  A,  have  been  transferred  to  this 
Ledger,  as  it  would  be  done  on  opening  a  new  set  of  Books  in  actual  business. 


LEDGER    B, 


39 


2 
Dr.                              I.  M.  Hall.                                Cr. 

1838 
April     1 

To  Balance,  Led.  A,    . 

2 

442 

00 

Dr.                      Reynolds  &  Morris.                        Cr. 

1838 
April    1 

To  Balance,  Led.  A,     . 

3 

554 

00 

Dr.                          Charles  Sheldon.                         Cr. 

1838 
April     1 

By  Balance,  Led,  A,    .  3 

204 

SO 

Dr.                           Stewart  &  Co                             Cr. 

» 

1838 
April     1 

By  Balance,  Led.  A,    .    : 

,          65 

00 

Dr.                           Wm.  H.  Imlay.                              Cr. 

1838 
AprU     1 

To  Balance,  Led.  A,     . 

2 

19 

75 

REMARKS. 


The  number  of  Books  made  use  of  in  any  business,  must  de- 
pend upoii  its  nature  and  extent,  of  which  they  are  to  be  a  true 
record.  The  design  of  increasing  the  number  of  Books  being  to 
render  more  perspicuous  one's  business,  and  to  facihtate  the  labor, 
it  would  be  idle  for  the  Dry-Goods  retailer  to  introduce  into  his 
business  all  the  Books  requisite  for  a  Wholesale  and  Commission 
business.  When  people  limited  their  trade  to  their  own  cities,  or 
even  country,  fewer  Books  were  required  to  record  the  business 
transactions,  and  the  method  of  Single-Entry  answered  a  tolera- 
ble purpose  ;  but  as  commerce  increased,  a  larger  number  of 
Books  were  indispensable,  and  to  record  their  business  transac- 
tions by  Double-Entry,  was  found  the  only  safe  method  that 
could  be  adopted.  As  it  is  the  design  of  the  author  to  simplify 
the  subjects  as  much  as  may  be,  by  dropping  every  thing  unim- 
portant, and  introducing  all  essentials,  the  subsidiary  Books  used 
in  business  will  only  be  enumerated,  forms  given,  with  due  expla- 
nation. 


CJIECK-BOOK. 


41 


FORM  OF  A  CHECK-BOOK. 

ExqHANGE  Bank. 

1839. 


Jan.  4,  Deposited, 
"  6,  do.  . 
"     8,         do.     . 


No.  1  &  2, 


"  16,  Deposited, 
«  18,         do.     . 


No.  3  &  4, 


21,  Deposited,   . 


"  22,  Deposited, 

"  26,  do.     . 

"  30,  do.     . 

"  31,  do.     . 


No.  6  &  7, 


Balance  now  in  Bank 


Dr. 
15,00000 
8,00000 


5,000 


00 


28,000 
7,000 


21,000 
2,000 
3,000 


26,000 
12,000 


14,000 
4,000 


18,000 
6,000 


12,000 
2,000 
4,000 


2,00000 


3,500 


23,500 
1,200 


22,30000 


00 


No.  1 — Jan.  6, 

To  Samuel  Comstock, 

No.  2— Jan.  8, 

To  D.  F.  Robinson,  . 


No.  3— Jan.  10, 
To  Wm.  E.  Iralay, 
No.  4 — Jan.  15, 
To  Homer  Foote, 
To  pay  my  note, 


No.  15— Jan.  18, 
To  Wm.  H.  Imlay, 
To  pay  for  Flour, 


No.  6— Jan.  20, 
To  J.  B.  Shultas, 


No.  7— Jan.  24, 
ToA.M.CoUins&Son, 


Cr. 

4,000 

3,000 


4,00000 


8,000 


6,000 


200 


1,00000 


00 


00 


00 


When  you  deposite  any  money,  you  enter  the  sum  deposited 
on  the  Dr.  side,  and  when  you  draw  out  money,  you  enter  the  sum 
drawn  out  on  the  Cr.  side,  giving  the  No.  of  the  Check,  and  to 
whom  and  for  what  the  Check  was  given.  The  difference  between 
the  sum  of  the  deposites  and  the  amount  drawn  out  will  show  the 
balance. 


D* 


42 


ACCOUNT  SALES-BOOK. 


ACCOUNT    SALES-BOOK. 

When  goods  are  consigned  for  sale,  the  consignee  records  the 
sales,  charges  and  commission,  with  all  the  items  of  expense,  on 
the  Account  Sales-Book.  If,  in  the  meantime,  the  consignee  has 
advanced  money  to  the  consigner,  the  amount  is  placed  to  the  Dr. 
of  his  account,  and  not  to  the  sales-account. 


Account-Sales  of  Wine  from  France^  per  the  ship  Wave,  and  sold 
by  W.  Sf  A.  Ely,  Wholesale  Dealers  and  Commission  Merchants,  hy 
order  and  on  account  and  risk  of  John  Duval,  Esq. 


1838    1 

Nov. 

6 

It 

8 

li 

9 

u 

a 

Nov. 

1 

(( 

(C 

(( 

2 

(( 

10 

a 

11 

It 

(( 

By  D.  Bull,     .     .     -9)  1  month, 

For  12  pipes,  1,512  galls.     .     .     .     -S)  1  50 


By  Hills  &  Bolter,  ft  3  months, 
For  24  pipes,  3,024  galls.     . 


ti  1  46 


W.  &  A.  Ely, 

For  6  pipes,  750  galls U  I  60 


S.  B.  Grant,     .     .     ti)  2  months. 
For  8  pipes,  1,008  galls.     . 

Charges. 


U  1  48 


Bond  ^  Custom  House,      ......     1,000 

Cash  paid  for  Freight,         300 

Cartage  and  Cooperage, 50 

Storage  and  Advertising, 20 

Our  Commission,       ........  600 


Net  proceeds, 

Errors  Excepted. 

W.  &  A.  Ely 
Hartford,  Nov.  11,  1838. 


2,268 
4,415 
1,200 
1,491 


9,374 


1,970 


7,404 


ACCOUNT-SALES-BOOK. 


43 


Account-Sales  of  300  pieces  of  Silk,  received  per  the  Wasp,  from 
France,  and  sold  hy  Hudson  6f  Putnam,  Commission  Merchants,  on 
account  and  risk  of  John  Duval,  Esq. 


1838 
Nov.    12 


14 


23 


12 


25 


By  A.  &  C.  Day  and  Co.,  ^  3  months. 

For  60  pieces, -fi)  50  00 

By  A.  M.  Collins  &  Sons, 

For  100  pieces,  ...;..     fD  48  00 

By  J.  Olmsted  &  Co., 

For  140  pieces,       .     .     .     .     .     8)  50  00 


Charges. 

Custom-House  Duties, 30  00 

For  Freight  and  Cartage, 27  00 

Storage  and  Advertising,       .     ,     .     .  8  00 

Our  Commission,      .     .     .     .     .     .  .  400  00 


Net  proceeds,. 


[  Errors  Excepted,] 

Hudson  &  Putnam. 
Hartford,  Nov.  25,  1838. 


3,000 
4,800 
7,000 


14,800 


465 


14,335 


ACCOUNT    CURRENT -BOOK 

John  G.  Coles,  Esq.  of  Boston,  in  Account- Current  with  W.  <Sf  A. 
Ely,  of  Hartford,  Conn. 


1838 

Mar.  4 

To  Cash,  for  Draft, 

600 

00 

By  Sugar  Sales,  con- 

"    16 

"  Mdse.  pr.  Invoice, 

300 

00 

signed  to  me,   .     . 

700 

50 

Apr.  12 

"  Draft  accepted. 

400 

00 

Net  proceeds  of  Cof- 

"    28 

"  10  Bales  Cotton, 

1,000 

00 

fee,  pr.  Jane,     . 

1,100501 

(( 

"  Cash,  per  order. 

800 

50 

Balance,  to  account, 

1,32000 

11 

"  Postage,     .     .     . 

20 

50 

3,121 

00 

3,12100 

W.  &  A.  Ely. 

44 


PETTY  CASH-BOOK. LOOK    OF    SHIPMENTS. 


Accounts- Current  having  been  taken  from  the  Ledger  and 
prepared  to  transmit  to  correspondents,  are  first  copied  into  this 
book. 

On  the  debit  side  are  entered  all  expenses  incurred  for  your 
correspondents  ;  and  on  the  credit  side  are  placed  all  sums  which 
you  have  realized  from  the  sale  of  the  goods,  or  otherwise. 


PETTYCASH-BOOK. 

On  this  book  are  entered  all  petty  expenses,  such  as  for  post- 
age, cartage,  porterage,  &c.;  and  the  sum  total  of  these  is  carried 
to  the  principal  Cash-Book,  daily,  weekly,  or  monthly,  as  may  be 
expedient. 


BOOK    OF   SHIPMENTS. 

This  is  sometimes  called  the  Invoice-Book  outward,  and  on  it 
are  copied  all  Invoices  of  goods  sent  abroad,  either  to  order  or  on 
consignment; 

Invoice  of  Goods  shipped  to  John  Haggcrty   Sf   Co.,   New-York,    to 
sell  on  our  account. 


. — J 

Hartford,  February  8th,  1838. 

11  bales  Cotton,     . 

5000  lbs.       . 

.     fJD        20  cts. 

1,000 

00 

5  hhds.  Molasses, 

300  galls.     . 

.     ®        45    " 

135 

00 

12  boxes  Sugar,     . 

850  lbs. 

.     n         15    " 

127 

50 

10  bales  Cassia,     . 

500    "     .     . 

.     ®        20    " 

100 

00 

15  bags  Coffee, 

648    "     .     . 

.     .     ®        15    " 

97 

20 

20  bbls.  Flour,       . 

.    ti)  10  00 

200 

00 

10  boxes  Raisins. 

.     e    1  50 

15 

00 

1,674 

70 

I 

Hanks,  Harris  &,  Co. 

INVOIOE-BOOK. 


45 


INVOICE-BOOK. 

On  this  book  are  transcribed  all  Invoices  of  goods  purchased, 
that  more  convenient  reference  may  be  had  to  them.  This  book 
may  be  made  of  cartridge  paper,  and  all  the  original  Invoices  be 
pasted  on  it,  according  to  their  dates,  or  arranged  alphabetically, 
with  an  index,  as  to  a  Ledger. 


Hartford,  Jan. 

4,  1837. 

Hanks,  Harris  &  Co., 

Bought  of  Hills  <Sf  Bolter 

11  bales  of  Cotton,         5000  lbs. 

®        20  cts. 

1,000 

00 

5  hhds.  Molasses,            300  gals. 

CD        45    " 

135 

00 

12  boxes  Sugar,      .     .     850  lbs.     . 

®        55    " 

467 

50 

10  bales  Cassia,      .     .     500    " 

n        20    " 

100 

00 

15  bags  Java  Coffee,   .     648    " 

^         15    « 

97 

20 

20  bbls.  Superfine  Flour,    .     .     . 

^  10  00 

200 

00 

10  boxes  Raisins, 

n  1  50 

15 

00 

Received  Payment, 

2,014 

70 

Hills 

&  Bolter. 

Hartford,  Jan.  5,  1837. 

Hanks,  Harris,  &  Co., 

Bought  of  John  Olmsted  <Sf  Co. 

30  yds.  Blue  figured  Silk,       ...     CD        75  cts. 
10    "     Superior  Broadcloth,  .     .     .     -©    4  75   « 
30    "     Brussels  Carpeting,          .     .     -0)    1  42   " 

22 

47 
42 

50 
50 
60 

Received  Payment, 

John  Olmsted  &  Co., 

112 

60 

46  LETTER-BOOK. 


Hartford,  Jan.  6,  1837. 

Hanks,  Harris,  &  Co., 

Bought  of  Burt  6f  Townsend. 

1,200  pairs  Boys' Shoes,       .     .     .     .     .     f?)  1  00 

400     "     Men's      " ^  1  50 

600     "         "     Boots,        -S)  3  00 


[Save  Errors.] 

Received  Payment, 

Burt  &  Townsend. 


LETTER-BOOK. 

On  this  book  are  copied  all  tHe  business  letters  either  sent 
abroad,  or  received  from  others,  for  reference. 


WITH     GOODS     CONSIGNED. 

Hartford,  Jane  8th,  1837. 
Messrs.  Brown  &  Co.,  > 
New-Orleans.         \ 

Gentlemen, 

Annexed,  you  have  an  invoice  of  Cloths,  per  the  Ocean, 
Capt.  Johnson,  Master,  amounting  to  $4120,50,  to  be  sold  on  our 
account. 

As  the  Cloths  v^^ere  manufactured  from  v^ool  of  a  superior 
quality,  and  in  a  manufactory  second  to  none  in  the  country,  we 
anticipate  a  ready  disposal  of  the  consignment.  We  are  confident 
that  no  pains  will  be  spared  on  your  part,  to  effect  advantageous 
sales,  knowing  that  further  consignments  from  us  will  depend 
upon  the  result  of  the  present. 

We  are,  Gentlemen, 

N       Yours  respectfully, 

H.  H.  &  Co. 


Messrs.  Hanks,  Harris  &  Co. 
Hartford. 


LETTER-BOOK.  47 

WITH     ACCOUNT     OF     SALES. 

New-Orleans,  Aug.  20th,  1837. 


Gentlemen  J 

We  lose  no  time  in  furnishing  you  with  an  account  of  sales  of 
Cloths,  per  the  Ocean,  net  proceeds  amounting  to  $5500,00. 

We  take  the  liberty  to  send  you,  for  the  above  amount,  our 
Draft,  at  20  days  sight,  on  P.  W.  &  King,  New-York. 

Your  consignment  reached  us  in  good  time  ;  there  being  but 
few  superior  woollens  in  the  market  at  wholesale,  we  were  able 
to  dispose  of  them  at  a  price,  which,  we  trust,  will  prove  highly 
satisfactory  to  yourselves.  Rest  assured,  that  any  business  with 
which  you  may  be  pleased  to  intrust  us,  will  receive  due  atten- 
tion.    In  the  mean  time,  subscribing  ourselves 

Your  ob't  servants, 

Brown  6c  Co- 


Hartford,  July  2nd,  1837. 
Messrs.  J.  Hart  &  Co.,  ) 
New-York.        \ 

Gentlemen, 

Please  ship  for  us,  per  the  first  vessel  bound  for  Hartford, 
488bbls.  of  superior  Flour,  at  $10,00  per  bbl.,  delivered,  as  per 
your  last  advices. 

You  can  draw  upon  us  at  10  days  sight,  for  the  above  amount, 
payable  at  the  Phoenix  Bank,  or  otherwise,  as  may,be  most  agree- 
able to  yourselves,  assuring  you  in  either  case  your  Draft  shall  be 
honored. 

We  are,  Gentlemen, 

Yours  respectfully, 

H.  H.  &  Co. 


New- York,  7tli  July,  1837. 
Messrs.  Hanks,  Harris  &.  Co.,  ) 
Hartford.         \ 

Gentlemen^ 

Agreeable  to  your  favor  of  the  second,  we  have  shipped  for 
your  account  and  risk,  on  board  the  Hero,  Captain  Sans,  Master, 
for  Hartford,  488  bbls.  Flour,  at  $10,00  delivered,  amounting  as 


48  LETTER-BOOK. 

per  Invoice,  to  $4880,  which  we  have   placed  to  your  debit. 
Waiting  further  orders, 

We  remain,  Gentlemen, 

Your's  truly, 

J.  Hart  &  Co. 


Messrs.  John  Howard  &  Co.. 
New-York. 


GETTING     ACCEPTANCE. 

Hartfori,,  July  8th,  1837. 


Gentlemen, 

Please  do  the  favor  of  procuring  acceptance  on  the  inclosed 
Draft  for  $1,000,  at  10  days  sight,  on  St.  Johns  &  Co.,  Pearl-st., 
and  retain  the  same  in  your  possession  till  maturity,  at  which 
time  you  can  pay  the  amount  to  Warriner  &  Birch,  on  our  ac- 
count, taking  their  receipt  for  the  same.  In  case  of  non-accept- 
ance, you  will  have  the  Bill  protested,  giving  us  due  notice. 
Believe  us,  Gentlemen, 

Your's  respectfully, 

Hanks,  Harris  &  Co. 


ONPROTEST. 

New- York,  July  24th,  1837. 
Messrs.  Hanks,  Harris  &  Co.,  ) 
Hartford.         ] 

Gentlemen, 

In  conformity  with  your  favor  of  the  8th  ultimo,  your  Bill 
has  been  duly  presented  for  acceptance,  which  being  refused  by 
St.  Johns  &  Co.,  is  now  under  protest.  No  exertions  were 
spared  on  our  part  to  procure  acceptance,  but  all  to  no  purpose. 
Waiting  further  orders, 

We  are.  Gentlemen, 

Your's  truly, 

John  Howard  &  Co. 


LETTER-BOOK.  49 

ORDERS     TO     INSURE. 

Habtford,  July  2nd,  1837. 

John  Trust,  Esq., ; 
New  York,      j 

Sir, 

Please  effect  Insurance  for  our  Account,  on  thirty-three 
bales  Broadcloths,  $4120,50,  shipped  per  the  Jane,  Capt.  Ben- 
son, from  this  port  to  New-Orleans,  placing  the  amount  of  in- 
surance to  the  Dr.  of  your 

Humble  servants, 

Hanks,  Harris  &  Co. 


HAVING  EFFECTED  INSURANCE. 

Njiw-YoKK,  July  9th,  1837. 


Messrs.  Hanks,  Harris  «fe  Co., 
Hartford. 


Gentlemen, 

In  obedience  to  your  request  of  the  2nd,  I  have  effected  in- 
surance with  the  Marine  Insurance  Company,  for  $4120,50,  on 
the  cloth  consigned  per  the  Jane,  Capt.  Benson,  Master,  for  New- 
Orleans — Premium  and  Policy  amounting  to  $80,00,  which  I 
have  placed  to  your  debit. 
I  am,  sir, 

Very  respectfully  your's, 

John  Trust. 


New-York,  July  12th,  1837. 

Messrs.  Hanks,  Harris  &  Co.,  > 
Hartford.         \ 

Gentlemen, 

It  is  with  regret  that  I  inform  you  of  the  total  loss  of  Flour, 
per  the  Hero,  Capt.  Sans,  from  this  port  to  Hartford.  I  am  hap- 
py, however,  that  it  was  insured,  as  per  your  advice,  and  that  the 
underwriters,  with  whom  the  insurance  was  effected,  are  honora- 
ble men,  and  have  agreed  to  pay  the  above  on  the  30th  inst.,  im- 
mediately after  which  you  shall  be  in  cash.     Meantime,  I  am, 

Gentlemen, 

Your's  very  truly, 

John  Trust. 
7  Jl 


I 


50  LETTER-BOOK. 

Barkhamsted,  Sept.  1st.,  1837. 
Messrs.  Hanks,  Harris  &;  Co.,  ) 
Hartford.         j 

Gentlemen,  ^ 

It  becomes  my  painful  duty  to  inform  you  that  our  Compa- 
ny, inconsequence  of  certain  unfortunate  engagements  with  seve- 
ral houses  in  New-York,  find  it  out  of  their  power  to  meet  their 
engagements,  and  are  obliged  to  suspend  payments.  You,  being 
one  of  the  creditors,  will,  with  the  others,  be  duly  notified  of  a 
general  meeting,  when  the  balance-sheet  will  have  been  taken 
and  submitted  for  examination. 

In  the  mean  time,  we  shall  collect  such  facts  as  will  convince 
all,  that  the  embarrassments  have  arisen,  not  from  mismanage- 
ment on  our  part,  but  from  causes  entirely  beyond  our  control. 
Your's,  very  respectfully. 

Super  Superfine. 


Hartford,  July  4th.,  1837 

Martin  Van  Buren,  Esq.,    t 
Washington.        ) 

Sir, 

It  gives  us  much  pleasure  in  introducing  to  your  acquaint- 
ance, the  bearer,  Samuel  W.  Chapin,  of  our  place,  who  antici- 
pates spending  some  months  at  Washington. 

As  Mr.  Chapin  is  a  particular  friend  of  ours,  we  shall  feel  per- 
sonally obliged  for  any  marks  of  civility  and  attention  which  you 
may  show  him,  assuring  you  at  the  same  time  that  you  will  find 
him  a  gentleman  and  a  scholar. 

We  remain,  most  truly,  sir, 

Your  obedient  servants, 

Brown  &  Brothers. 


QUESTIONS  AND  ANSWERS 

ON 

FOREIGN  AND  INLAND  BILLS. 

What  is  a  Bill? 

A  Bill  is  an  obligation  by  which  one  party  binds  himself  to  pay 
a  certain  sum  of  money  to  another  party,  at  some  future  period 
therein  specified. 

What  is  an  Inland  Bill? 

An  Inland  Bill  is  one  payable  in  the  same  country  or  state  in 
which  it  is  drawn,  and  may  be  in  the  shape  of  a  Promissory  Note 
or  Draft;  the  former  containing  a  promise  and  the  latter  an  order. 

What  is  an  Inland  Draft  ? 

An  Inland  Draft  is  an  order  from  a  party  called  the  Drawer, 
addressed  to  another  party  called  the  Drawee,  both  in  the  same 
country  or  state,  requiring  the  latter  to  pay  to  his  order,  at  a 
specified  time,  a  certain  amount  in  money  or  other  property. 

What  is  a  Promissory  Note  ? 

A  Promissory  Note  is  a  written  promise  from  a  party  called 
the  maker,  to  another  party  called  the  payee,  or  holder,  to  pay 
a  certain  sum  of  money  or  other  property,  to  his  order,  within  a 
specified  time. 

What  are  the  requisites  for  a  regular  Bill  ? 

In  a  regular  Bill,  the  following  four  particulars  are  requisite — 
1st.  The  sum,  place,  and  date;  2nd.  The  time  of  payment; 
3rd.  The  person  to  whose  order  it  is  payable;  4th.  The  address 
and  superscription. 

How  many  persons  may  be  concerned  in  an  Inland  Bill? 

The  Drawer,  Drawee,  Acceptor,  Payee,  Indorser,  and  Indorsee. 

The  Drawer  is  the  party  that  makes  the  Draft. 

The  Drawee  is  the  party  on  whom  it  is  drawn. 

JVofc— Drafts  which  are  made  or  indorsed  in  one  of  the  states  and  payable  in  another  state, 
are  by  the  best  authority  now  considered  Foreign  Bills.  The  laws  which  regulate  Bills  are  made 
by  each  state  for  itself. 


62  FOREIGN    AND    INLAND    BILLS    EXPLAINED. 

Acceptor  is  the  party  on  whom  it  is  drawn,  and  by  subscribing 
it,  is  bound  to  pay  its  value  when  due. 

Payee  is  the  party  to  whose  order  the  Draft  is  made  payable, 
and  who  must  be  \hejirst  indorser. 

Indorser  is  the  party  who  writes  his  name  across  the  body  of  the 
Bill. 

Indorsee  is  the  holder  or  party  to  whom  the  Bill  is  last  in- 
dorsed. 

What  is  meant  by  Discounting  a  Bill  ? 

Discounting  a  Bill  means  to  procure  cash  for  it  before  it  is  due; 
and  a  Bill  is  said  to  be  discomited  when  it  is  indorsed  to  any  per- 
son or  Banking  Company,  that  pay  the  holder  the  net  proceeds ; 
that  is,  the  face  of  the  note,  less  the  interest,  for  the  time  it  has  to 
run  before  maturity. 

What  are  the  incidents  to  which  Bills  are  subjected,  after  they 
are  dehvered  by  the  Drawer? 

Acceptance,  Indorsement,  Payment,  and  Protest. 

What  is  an  Indorsement? 

A  general  Indorsement  is  when  the  holder's  name  only  is  writ- 
ten on  the  back,  being  in  effect  a  promise  to  pay,  should  the  ac- 
ceptor or  any  of  the  previous  indorsers  become  insolvent. 

A  special  Indorsement  is  when  the  holder  names  the  party  to 
whose  order  he  indorses  it;  and  this  form  is  preferable  to  a  gen- 
eral Indorsement,  in  remitting  bills,  in  point  of  security,  because 
it  prevents,  as  far  as  possible,  fraud  or  forgery,  as  the  person's 
name  to  whom  it  is  indorsed,  must  be  forged  before  it  can  pass. 

When  should  a  Bill  be  presented  for  payment  ? 

It  should  be  presented  on  the  last  day  of  grace,  within  Bank 
hours,  that  is,  before  3  o'clock,  P.  M.  and  after  9  A.  M. 

What  is  meant  by  Days  of  Grace  ? 

Days  of  Grace  are  a  certain  number  of  days  after  the  time  limit- 
ed by  the  Bill,  which  the  acceptor  has  a  right  to  demand  on  payment 
of  the  same.  These  days  were  so  called  because  they  were  gra- 
tuitously allowed;  but  now,  by  custom  of  the  merchants,  sanction- 
ed by  the  decision  of  the  courts  of  justice,  they  are  demandable  of 
right.  The  number  of  these  days  varies,  according  to  the  different 
custom  of  different  nations,  and  must  always  be  computed  accord- 
ing to  the  laws  and  customs  of  the  place  where  they  become  due. 
Three  days  are  allowed,  as  a  general  thing,  in  the  United-States. 


FOREIGN    AND    INLAND    BILLS    EXPLAINED.  53 

If  the  last  day  happen  on  a  Sunday,  fast-day,  or  any  hoUday, 
the  Bill  becomes  payable  on  the  preceding  day.  Amsterdam  has 
6  days;  Hamburg,  12;  Paris,  10;  Madrid,  14;  Leghorn,  0;  Na- 
ples, 3;  Genoa,  30;  Venice,  6;  Lisbon,  6;  London,  3;  Dublin, 
3;  Gibraller,  14;  Vienna,  3;  Copenhagen,  8;  Dantzic,  10; 
Trieste,  3;  Cadiz,  6;  Petersburgh,  10;  Rotterdam,  6;  Edin- 
burgh, 3 ;  Geneva,  5 ;  Bremen,  8 ;  Antwerp  has  6  days  grace. 

What  is  a  Foreign  Bill  ? 

A  Foreign  Bill  is  an  order  from  a  party  in  one  country,  ad- 
dressed to  another  party  in  a  different  country,  requiring  him  to 
pay  a  certain  sum  to  his  order,  or  to  a  third  or  fourth  party,  at  a 
specified  time. 

What  is  meant  by  Protesting  a  Bill  ? 

If  a  Foreign  Bill  is  refused  acceptance,  when  presented  or  re- 
fused payment  when  it  becomes  due,  it  must  be  Protested.  For 
this  purpose,  it  is  necessary  to  cause  a  Notar}'-  Public  to  call  on 
the  party  drawn  upon  in  the  former  case,  or  at  the  place  where  it 
is  made  payable  in  the  latter  case,  and  demand  acceptance  or  pay- 
ment, (as  the  case  may  be,)  by  which  he  secures  his  right  of  re- 
course against  the  Drawers  and  Indorsers,  jointly  and  severally, 
for  payment,  interest  and  damages. 

What  is  meant  by  Noting  a  Bill  ? 

The  Notary's  marking  on  the  Bill  the  date  of  protesting,  with 
his  initials,  which  is  legal  evidence  of  protest. 

What  is  the  consequence  of  neglecting  Protest? 

A  Bill  neglected  to  be  protested,  loses  it  privileges,  and  becomes 
only  a  simple  document,  on  which  an  action  may  be  raised  against 
the  acceptor  for  the  payment  of  the  debt;  but  this  is  attended 
with  many  disadvantages. 

How  is  the  time  of  payment  fixed  on  Bills  drawn  after  sight? 

The  acceptor  marks  the  date  of  his  acceptance  on  the  Bill,  and 
the  term  is  only  computed  from  it,  and  not  from  the  date  of  the 
Bill. 

What  is  Usance  or  Double  Usance  ? 

Usance  is  the  usual  time  at  which  Bills  are  drawn  between  dif- 
ferent places,  as  one,  two,  or  three  months  after  sight ;  and  Double 
or  Treble  Usance,  means  twice  or  thrice  the  time  •  and  half 
Usance  is  one  half  the  time. 

What  is  a  proper  negotiation  of  a  Bill? 


64  FOREIGN    AND    INLAND    BILLS    EXPLAINED. 

It  consists  in  the  diligent  and  due  performance  of  the  several 
duties  which  the  law,  and  the  practice  of  the  country,  require  of 
the  several  parties. 

What  is  the  duty  of  the  Drawer  ? 

It  is  the  duty  of  the  Drawer  to  furnish  the  Payee  with  a  good 
and  unexceptionable  Draft  on  a  Drawee  with  whom  he  has  suffi- 
cient credit,  or  funds  in  his  hands  ;  because  in  case  of  non-accept- 
ance or  non-payment,  the  Payee  or  holder  can  sue  the  Drawer  for 
the  amount  of  the  Draft,  and  damages. 

What  is  the  duty  of  the  Drawee  ? 

The  duty  of  the  Drawee  is  to  be  punctual  in  returning  any  Bill 
transmitted  to  him  for  acceptance,  by  the  first  post,  whether  ac- 
cepted or  not;  otherwise  he  is  answerable  for  the  sum  of  the  Bill, 
unless  he  give  due  intimation  of  his  non-acceptance. 

What  is  the  time  allowed  for  acceptance  of  Bills  drawn  after 
sight  ? 

The  Drawee,  in  general,  ought  to  accept  in  twenty-four  hours, 
or  to  signify  to  the  Payee  or  holder,  that  it  will  not  be  accepted. 
If  it  be  a  Bill  drawn  after  sight,  and  which  he  means  to  accept,  he 
is  bound  to  date  his  acceptance  on  the  day  it  was  presented,  or  at 
all  events,  the  day  following.  And  he  is  bound  to  accept  the  Bill 
of  the  Drawer  to  the  amount  of  funds  belonging  to  the  Drawer 
in  his  possession. 

What  is  meant  by  accepting  and  paying  Supra-Protest  ? 

A  Supra-Protest,  or  acceptance  upon  honor,  is  a  collateral  ac- 
ceptance, by  first  allowing  the  Bill  to  be  protested,  and  then  for  the 
honor  of  the  Drawer  or  Indorser,  immediately  accept  it,  by  which 
means,  should  the  Acceptor  not  afterward  be  put  in  possession 
of  funds,  he  will  secure  his  right  of  recourse. 

How  is  a  Supra-Protest  taken  ? 

The  Drawee  must  write  on  the  Bill  to  this  effect :  "  Accepted 
Supra-Protest  in  honor  of  A.  B.,"  after  which  he  should  immedi- 
ately send  the  Protest,  and  the  information  of  the  acceptance,  to 
the  party  for  whose  honor  it  was  accepted. 

Why  is  it  necessary  that  the  Drawer  should  get  early  notice  of 
non-acceptance  ? 

To  enable  him  to  take  the  necessary  steps  for  recovering  any 
effects  which  he  may  have  in  the  hands  of  the  Drawee,  as  well  as 


FOREIGN    AND    INLAND    BILLS    EXPLAINEp.  55 

to  furnish  the  holder  with  another  Bill,  ox  providing  for  payment 
of  the  dishonored  one  by  the  time  it  falls  due. 

What  is  meant  by  a  Bill  being  dishonored  ? 

Bills  are  dishonored  when  acceptance  or  payment  is  refused, 
by  which  a  protest  becomes  necessary  as  soon  as  the  Drawee  re- 
fuses to  accept  or  pay.  When  a  Bill  is  dishonored  for  non-pay- 
ment, it  generally,  at  least,  in  the  way  of  courtesy,  returns  succes- 
sively in  the  way  it  advanced,  until  it  reaches  the  Drawer;  al- 
though the  Holder  may  take  any  of  the  preceding  Indorsers  he 
chooses,  holding  them  responsible  for  the  sum  of  the  Bill,  for  in- 
terest and  expenses. 

What  are  the  consequences,  should  the  Holder  neglect  to  Pro- 
test it  in  due  time,  or  to  give  intimation  of  non-acceptance  or  non- 
payment ? 

Should  the  Holder  either  neglect  to  protest  in  due  time,  or  to 
give  intimation  of  non-acceptance  or  non-payment,  he  forfeits  all 
claim  against  any  of  the  Indorsers,  because  by  this  neglect 
of  his  duty  he  puts  it  out  of  their  power  to  take  legal  steps  for  their 
relief,  even  though  he  can  show  from  the  failure  of  the  Acceptor, 
or  any  other  circumstance,  that  no  loss,  in  point  of  fact,  ensued 
from  his  neglect. 

What  time  does  the  Law  allow  to  give  intimation  ? 

In  ordinary  cases,  intimation  of  the  dishonor  of  a  Foreign  Bill 
must  be  forwarded  by  the  Ji7'st  post ;  and  if  an  Inland  Bill,  the 
same  is  required. 


FORMS  OF  BILLS. 


DUE-BILL 


A  Due-Bill  is  simply  a  pledge  on  the  part  of  the  giver,  to  pay- 
to  the  givee  so  much  cash  or  other  property,  at  some  future  pe- 
riod, in  consideration  of  an  equivalent  received.  It  is  doubtful 
vv^hether  it  is  entitled  to  any  interest,  except  it  be  written,  "  with 
interest" 

FORM     I. 

$500,00. 

Due,  Hartford,  March  15th,  1838,  to  John  Trust,  Five  Hun- 
dred Dollars,  value  received. 

Samuel  Risk. 

F  O  R  M     I  I  . 

$500,00. 

Due,  Hartford,  March  15th,  1838,  to  John  Trust,  Five  Hun- 
dred Dollars,  to  be  paid  in  Goods  from  my  store,  value  received. 

Samurl  Risk. 


RECEIPT 


This  merely  certifies  that  the  giver  has  received  from  the  givee 
a  certain  amount  of  cash,  or  other  property,  on  his  ov^n  or  on  the 
account  of  a  third  person. 

FORM     I. 

$150,00. 

Received,  Hartford,  March  15th,  1838,  from  Daniel  Wads- 
worth,  Esq.,  One  Hundred  and  Fifty  Dollars. 

David  L.  Long. 

FORM     II. 

Received,  Hartford,  March  15th,  1838,  from  David  Sage,  Three 
Hundred  Bushels  of  Merchantable  Corn,  in  full  of  all  demands. 

J.  King. 


FORMS  OP  BILLS.  67 

FORM     III. 
$300,00., 

'  Received,  Hartford,  March  15th,  1838,  from  S.  Tudor,  on  ac- 
count of  Thomas  Brown,  Three  Hundred  Dollars,  in  full  of  all  demands 
against  said  Brown.     Errors  excepted. 

H.  Thorndike. 


PROMISSORY  NOTE. 

A  Promissory  Note  is  a  written  obligation  of  one  party,  to  pay 
to  another  party,  at  some  future  period,  a  certain  amount  of  cash, 
or  other  property,  in  consideration  of  an  equivalent  received, 
These  Bills  are  generally  transferable,  at  the  option  of  the  holder, 
and  may  pass  through  a  dozen  hands  before  payment. 

FORM      I. 

Hartford,  March  15th,  1838. 
$1,000 

One  month  from  date,  I  promise  to  pay  to  the  order  of  John 
Jacob  Astor,  at  the  Hartford  Bank,  One  Thousand  Dollars,  value  re- 
ceived. 

Samuel  Parker. 

The  above  form  would  be  transferable,  but  the  holder  must 
lodge  it  in  the  Hartford  Bank  33  days  from  date,  or  before,  as  the 
maker  is  not  obligated  to  pay  it  elsewhere  till  after  the  given  date. 

form     II. 

Hartford,  March  15th,  1838. 
$1,000. 

Sixty  days  from  date,  we  severally  and  jointly  promise  to  pay  to 
the  order  of  Daniel  Wadsworth,  One  Thousand  Dollars,  value  received. 

Samuel  W.  Chapin. 
Chxuncey  Howard. 

A  Bill  of  this  form  will  hold  either  of  the  signers  responsible, 
and  "in  case  of  need,"  either,  or  both,  maybe  sued  for  its  pay- 
ment, 

form     III. 

Hartford,  March  ISih,  1838. 
$500,00. 

Ten  days  from  date,  I  promise  to  pay  J.  J.  Astor,  Fi^e  Hun- 
dred Dollars,  value  received. 

John  Dov. 
8 


58  ^  FORMS    OP   BILLS. 

Any  legal  steps  taken  in  relation  to  this  Bill,  must  be  instituted 
in  the  name  of  the  givee,  though  it  may  have  had  a  number  of 
owners,  andstill  be  in  the  possession  of  another  person. 


DRAFTS. 

A  Draft  is  an  order  from  one  party,  requesting  another  party 
to  pay,  at  some  definite  time  hereafter  a  certain  amomit  of  money, 
or  other  property. 

FOAM    I. 

Hartford,  March  15th,  1838. 
$500,00. 

Thirty  days  from  date,  pay  to  my  order  Five  Hundred  Dol- 
lars, value  received,  and  place  the  same  to  the  debit  of 

Saul  H.  Porter. 

To  Caleb  Pond,  Esq.,  ) 
Hartford,  Conn.       \ 

The  above  Bill  being  presented  for  C.  Pond's  acceptance, 
he  will  write  across  the  face  of  it,  "Accepted;"  obligating  him- 
self by  the  same  token  to  pay  the  amount  agreeable  to  terms  pre- 
scribed. It  having  now  become  virtually  a  promissory  Note,  it 
may  be  transferred  like  any  negotiable  paper,  before  maturity. 

FORM      II. 

Hartford,  March  15th,  1838. 
$500,00 

At  sight,  pay  to  the  order  of  William  H.  Imlay,  Five  Hundred 
Dollars,  value  received,  and  place  the  same  to  the  debit  of 

Saul  H.  Porter. 

To  Caleb  Pond,  Esq.,  ) 
Hartford,  Conn.       ) 

FORM     III. 

/ 

Hartford,  March  15th,  1838. 
$300,00. 

Ten  days'  from  sight,  pay  to  the  order  of  Daniel  Wadsworth, 
at  the  Hartford  Bank,  Three  Hundred  Dollars,  value  received,  and 
place  the  same  to  the  debit  of 

.   Saul  H.  Porter 

To  Caleb  PonD/"Esq.,  ) 
Hartford,  Conn,       ) 

This  Praft,  after  acceptance  and  before  maturity,  must  be  lodg- 
ed in  the  Hartford  Bank  for  collection.  The  above  would  be- 
comei/due,  including  three  days  grace,  1 3  days  from  acceptance^ 


BILLS    OF    EXCHANGE.  59 

Should  the  third  form  fall  due  on  Sunday,  Thanksgiving,  Fast- 
day,  or  any  day  of  public  rest,  or  a  special  holiday,  payment 
would  be  lawfully  exacted  on  the  preceding  day,  and  unless  paid 
accordingly,  it  might  be  protested. 


BILLS   OF  EXCHANGE. 

Bills  of  Exchange  are  the  channel  through  which  many  mer- 
chants meet  their  liabilities  to  others,  and  through  which  most 
debts  are  canceled  between  individuals  of  different  nations. 
These  Bills  are  styled  Liland,  if  confined  to  parties  of  the  same 
country,  and  Foreign,  if  they  pass  from  one  nation  to  another ; 
both,  however,  being  entitled  to  nearly  the  same  privileges. 

The  great  safety  and  convenience  which  Bills  of  Exchange 
proffer  to  individuals  going  from  one  country  to  another,  and  in 
canceling  debts  between  A.  and  B.  of  different  nations,  have  ren- 
dered them  very  common  and  almost  indispensable. 

For  instance — B.,  of  London,  owes  A.,  of  Hartford,  $1,000. 
C,  who  is  going  to  London,  and  is  in  want  of  $1000  on  his  arri- 
val there,  buys  a  set  of  Exchange  or  Draft  of  A.  on  B.,  which 
enables  B.  to  cancel  the. debt  with  the  least  possible  trouble,  and 
also  puts  C.  in  funds  w^hen  he  arrives,  without  the  risk  and  trouble 
of  transporting  specie.  Three  days  grace  are  allowed  on  these 
Bills  in  England  and  the  United-States,  as  on  promissory  Notes, 
and  indeed,  what  is  true  of  Drafts,  as  such,  is  substantially  true  in 
relation  to  Bills  of  Exchange. 

These  Bills  are  sold  by  Banking  Companies  and  Brokers,  prin- 
cipally, both  on  their  own  account  and  for  individuals,  who,  having 
debts  abroad,  deposite  Drafts  with  the  Brokers,  to  sell,  on  which 
a  premium  of  from  2  to  12  per  cent,  is  paid. 

A  set  of  Exchange  is  from  2  to  6  copies  of  the  same  Bill,  being 
fac-similes  of  each  other,  except  the  clauses,  (2nd.  and  3rd.  unpaid,) 
(1st.  and  3rd.  unpaid,)  (1st.  and  2nd.  unpaid,)  &c.,  which  phrases, 
one  having  been  paid,  render  the  remaining  copies  null  and  void. 
Each  of  these  copies  are  sent  out  by  different  vessels,  to  prevent 
delay  in  payment,  should  the  first  be  lost. 


60  FORMS    OF    BILLS. 

FORM.  ' 

Hartford,  Feb.  10th,  1838. 
Exchange  for  jei,000. 

At  sight  of  this  my  first  of  exchange,  (second  and 
third  unpaid,)  pay  to  the  order  of  Dubois  &  Long,  One  Thousand 
Pounds,  Sterling,  value  received,  and  place  the  same  to  the  debit  of 

D.  W.  Clarke. 

ToJ.XoRD&Co.,  I 
London.  ) 

Hartford,  Feb.  10th,  1838. 
Exchange  for  jei,000. 

At  sight  of  this  my  second  of  exchange,  (first  and 
third  unpaid,)  pay  to  the  order  of  Dubois  &  Long,  One  Thousand 
Pounds,  Sterling,  value  received,  and  place  the  same  to  the  debit  of 

D.  W.  Clarke. 

To  J.  Lord  &  Co.,  I 

London.        )  r 

Hartford,  Feb.  10th,  1838. 
Exchange  for  jG  1,000. 

At  the  sight  of  this  my  third  of  exchange,  (first 
and  second  unpaid,)  pay  to  the  order  of  Dubois  &  Long,  One  Thou- 
sand Pounds,  Sterling,  value  received,  and  place  the  same  to  the  debit  of 

D.  W.  Clarke. 

To  J.  Lord  &  Co.,  ) 
London,        ) 

Accepted,  April  20th,  1838. 

J.  Lord  &  Co. 

The  phrase,  "  as  per  advice,"  and  "  in  case  of  need,"  "  A.  B.," 
&c.  The  former  expression  implying  that  the  drawer  had  pre- 
viously advised  the  drawee,  per  letter  ;  and  the  latter  phrase  is 
sometimes  inserted  where  there  is  some  fear  that  the  Bill  will  not 
be  accepted  by  the  drawee,  in  order  that  the  holder  may  present 
it  (in  case  of  refusal  by  the  drawee)  to  A. ;  and  if  he  does  not 
honor  it,  to  present  to  B.,  &c.  This  arrangement  may  supersede 
the  necessity  of  returning  the  Bill  to  the  maker,  and  save  the  ma- 
ker the  mortification  of  having  his  Bill  dishonored. 


DAMAGES  ON  PROTESTED  BILLS. 

When  Bills  of  Exchange  or  Drafts  are  protested  for  non-ac- 
ceptance or  non-payment,  the  State  in  which  the  Bill  was  drawn 
or  negotiated  determines  the  damages  which  shall  be  paid  on  such 
Bill.     The  damages  in  several  of  the  States  are  as  follows : — 

The  damages  on  Bills  drawn  or  negotiated  in  Massachusetts, 
payable  in  any  place  beyond  Cape  of  Good-Hope  and  protested 


DAMAGES    ON    PROTESTED    BILLS  61 

for  non-acceptance  or  non-payment,  are  20  per  cent.,  with  inter- 
est, and  SO  much  money  as  will  buy  a  good  Bill  on  the  place 
where  the  first  was  payable;  if  such  Bills  are  payable  in  any 
other  place  out  of  the  United-States,  the  maker  or  indorser  shall 
pay  the  amount  of  the  Bill,  on  demand,  at  the  then  current  rate  of 
exchange,  with  5  per  cent,  damages  and  interest  on  the  contents, 
from  the  time  of  protest,  which  shall  be  in  full,  for  all  damages, 
charges,  and  protest. 

The  damages  on  such  Bills,  payable  in  any  of  the  New-Eng- 
land States,  or  New- York  State,  are  3  per  cent.;  if  payable 
in  Virginia,  New-Jersey,  Pennsylvania,  Delaware,  Maryland,  or 
the  District  of  Columbia,  damages  are  5  per  cent.;  if  payable  in 
North- Carolina,  South-Carolina  or  Georgia,  damages  are  6  per 
cent.;  if  payable  in  any  other  place  in  the  United-States,  the 
damages  are  9  per  cent. ;  if  $100,  or  more,  and  payable  in  the 
same  state,  and  more  than  75  miles  from  where  it  was  drawn, 
damages  are  1  per  cent.  The  holder  is,  in  all  cases  where  the 
Bill  is  payable  in  the  United-States,  entitled  to  so  much  money 
as  will  buy  a  good  Bill,  interest,  charges,  and  the  fore-mentioned 
damages. 

The  damages  on  Bills  drawn  in  Connecticut,  and  payable  in 
other  States  or  places,  which  shall  be  returned,  under  protest, 
shall  be  as  follows.  If  payable  to  any  person  in  New-York 
city,  2  per  cent,  on  the  specified  sum  ;  if  to  any  person  in  Ver- 
mont, New-Hampshire,  Maine,  Massachusetts,  Rhode-Island, 
Nev/-York,  (except  the  city,)  New-Jersey,  Delaware,  Pennsylva- 
nia, Maryland,  Virginia,  or  the  District  of  Columbia,  the  damages 
are  3  per  cent,  upon  the  principal  sum  ;  if  payable  to  any  person 
in  North- Carolina,  South- Carolina,  Ohio,  or  Georgia,  5  per  cent, 
on  such  principal  sum;  if  to  any  person  in  any  other  State  or 
Territory,  or  District  in  the  United-States,  8  percent,  on  such  prin- 
cipal sum.  These  named  damages  shall  be  in  lieu  of  interest  and 
charges  till  the  time  notice  is  given  the  maker  or  indorsers  of 
protest.  In  all  cases  the  holder  is  entitled  to  a  new  Bill,  or  so 
much  money  as  will  buy  one  at  the  then  current  rate  of  exchanges. 

The  damages  on  Bills  drawn,  or  negotiated  in  New- York,  paya- 
ble in  any  of  the  New-England  States,  New- Jersey,  Pennsylvania, 
Ohio,  Delaware,  Maryland,  Virginia,  or  the  District  of  Columbia, 

and  returned  under  protest,  are  3  per  cent. ;  if  payable  in  North 

F 


62  DAMAGES    ON    PROTESTED    BILLS. 

Carolina,  South- Carolina,  Georgia,  Kentucky,  or  Tennessee,  and 
returned  under  protest,  the  damages  are  5  per  cent. ;  if  payable  in 
Europe,  or  any  State  or  Territory  in  the  United-States,  north 
of  the  Equator  or  West-Indies,  or  any  other  place  in  the  Western 
or  Atlantic  Ocean,  and  returned  protested,  the  damages  are  10 
per  cent.  Such  damages  shall  be  in  lieu  of  interest,  charges, 
&c.,  till  the  time  when  demand  shall  be  made,  after  which  de- 
mand interest  shall  be  allowed  on  the  principal  sum,  and  charges. 
The  holder  is  entitled  in  addition  to  such  damages,  to  a  new  Bill, 
or  money  to  buy  such  Bill  at  the  current  rate  of  exchange  between 
the  two  places. 

The  damages  on  Bills  drawn  or  negotiated  in  Pennsylvania, 
payable  out  of  the  State,  but  in  the  United-States,  (Louisiana  ex- 
cepted,) and  returned  under  protest,  are  5  per  cent. ;  when  payable 
in  Louisiana  or  any  other  place  (out  of  the  United-States,)  in  North- 
America  or  its  Islands,  except  the  North-West  Coast  of  America, 
Mexico,  or  in  any  of  the  West-Indian  Islands,  or  Bahama  Islands 
and  returned  under  protest,  the  damages  are  10  percent.;  when 
payable  in  Madeira,  the  Canaries,  Azores,  Cape-de-Verd  Islands, 
Spanish  Main,  or  Mexico,  and  returned  protested,  the  damages  are 
15  per  cent. ;  when  payable  in  Europe,  or  its  Islands,  and  returned 
under  protest,  the  damages  are  20  per  cent.,  and  in  any  other  part 
of  the  world  25  per  cent.  Interest  is  given  on  the  amount  of  the 
Bill ;  damages  and  charges  are  allowed  from  the  time  of  notice  of 
protest ;  and  the  amount  of  the  Bill,  and  damages  are  to  be  deter- 
mined by  the  rate  of  exchange  at  the  time  of  notice. 

The  damages  on  Bills  drawn  or  negotiated  in  Louisiana,  paya- 
ble out  of  the  jurisdiction  of  the  United-States,  and  returned  under 
protest  are  10  per  cent. ;  if  payable  in  any  other  State  in  the  Uni- 
ted-States, and  protested,  the  damages  are  5  per  cent,  upon  the 
sum  specified  in  the  Bill.  Such  damages  arc  in  lieu  of  interest, 
charges,  and  protest,  till  notice  is  given  of  protest.  Also  so  much 
money  as  will  buy  another  good  Bill  on  the  same  place. 

The  damages  on  Foreign  Bills,  drawn  in  IlHnois  and  protested 
for  non-payment  or  non-acceptance,  are  10  per  cent.,  and  on  Inland 
Bills  the  damages  on  protest  are  5  per  cent. ;  with  incidental 
charges,  interest  from  the  time  they  should  have  been  paid,  and  the 
principal  sum  of  the  Bill  to  be  settled  at  the  current  rate  of  ex- 
change. 


FORM  OF  PROTEST. 


BILL  OF  LADING 


No.  1,  2,  3, 

D.  Bond, 

New-Orleans. 


Shipped,  in  good  order,  and  well-conditioned,  by 
Hicks,  Lawrence  <^  Co.,  on  board  the  ship,  called  the 
North  American,  whereof  John  Smith  is  Master,  for 
the  present  voyage,  now  lying  in  the  port  of  Hartford, 
and  bound  for  New-Orleans.     To  say, 

Three  boxes,  containing  hooks,  being  marked  and 
numbered  as  in  the  margin,  and  are  to  be  delivered  in 
the  like  good  order,  and  well-conditioned,  at  the  afore- 
said port  oi  New- Orleans,  (the  danger  of  the  seas  only 
excepted,)  unto  D.  Bond,  or  to  his  assigns,  he  or  they 
paying  freight  for  the  said  goods,  with  primage  and 
average  accustomed. 

In  witness  whereof,  the  Master  of  the  said  vessel 
hath  affirmed  to  three  bills,  of  lading,  all  of  this  tenor 
and  date ;  one  of  which  being  accomplished,  the  others 
to  stand  void. 


Dated,  at  Hartford,  Conn- 
July  31st.,  1839. 


John  Smith. 


COMMON    PROTEST 


of   a   foreign    bill. 


On  this  2nd.  day  of  March,  in  the  year  1838,  at  the  request  of  D. 
Bond,  of  the  city  of  New- York,  merchant,  and  bearer  of  the  origi- 
nal Bill  of  Exchange,  whereof  a  true  copy  is  on  the  other  side 
written,  I,  D.  Brown  of  the  said  city,  Notary-Public,  duly  admit- 
ted and  sworn,  went  to  the  store  of  D.  Brand,  on  whom  said 
Bill  is  drawn,  and  there  speaking  with  a  clerk  in  the  accounting 
house,  I  produced  and  exhibited  to  him  the  said  original  Bill  of 
Exchange,  and  demanded  acceptance  thereof,  to  which  he  an- 
swered— That  he  knew  nothing  about  its  acceptance,  and  which 
answer  not  being  satisfactory,  I,  the  said  Notary,  at  the  request 
aforesaid,  have  Protested,  and  by  these  presents  do  solemnly 
Protest,  as  well  against  the  drawer  of  the  said  Bill  of  Exchange, 
as  against  all  others  whom  it  doth  or  may  concern,  for  exchanges, 


64  FORM  OF  RELEASE,    &C. 

re-exchanges,  damages,  costs,  charges,  and  interests,  suffered  or  to 
be  suffered  for  want  of  acceptance  of  said  Billof  Exchange. 

This  done  in  the  presence  of  R.  Doe  and  J.  Doe,  witnesses 
hereunto  required. 

D.  Brown. 


ACT   OF   HONOR. 

Afterward,  on  the  same  day,  month,  and  year,  before  me,  said 
Notary,  and  witnesses,  personally  came  and  appeared,  Mr.  L. 
May,  of  this  city,  merchant,  who  declared  he  was  ready,  and 
would  accept  the  said  Bill  of  Exchange,  now  under  Protest,  for 
the  honor  and  on  account  of  D.  Brand,  the  drawer,  holding  him, 
the  said  drawer  thereof,  and  all  others  concerned,  always  obliga- 
ted to  him,  the  said  appearer,  for  reimbursement  in  due  form  of 
law. 

D.  Brown. 

From  a  Merchant  to  two  of  his  Clerks,  to  transact  and  manage 
commercial  concerns. 

I  herein  appoint  my  two  clerks,  D.  Bond  and  D.  Brown,  of  the 
city  of  New-Orleans,  to  be  my  lawful  attornies,  jointly,  for  me,  and 
in  my  name,  to  transact  and  manage  all  business ;  also,  to  open  all 
letters  of  correspondence,  to  sign  and  answer  the  same,  and  to 
draw,  accept,  and  pay  all  Bills  of  Exchange  or  other  Promissory 
Notes;  all  monies  to  receive  and  acquittances  to  give  for  the 
same  ;  also  to  draw  and  sign  all  orders  and  drafts  for  payment 
of  money,  on  bankers,  or  other  persons,  where  I,  the  said  C.  Doe, 
shall  keep  cash;  and  further  also,  to  settle,  balance,  and  arrange 
all  books  and  accounts,  and  generally  to  do  every  act,  matter  and 
thing,  as  the  nature  of  the  business  of  me,  the  said  C.  Doe,  may 
require. 

I  do  hereby  ratify,  &c. 


A   GENERAL   RELEASE. 

Know  all  men  by  these  presents.  That  I,  D,  Bond,  of 
Hartford,  for,  and  in  consideration  of  the  sum  of  $5,000,  paid  to 


FORM    OP   LEASE,    &C.  66 

me  by  D.  Brown,  of  Hartford,  have  remised,  released,  and  forever 
discharged,  and  by  these  presents,  do,  for  me,  my  heirs,  execu- 
tors, and  administrators,  remise,  release,  and  forever  discharge 
said  D,  Brown,  his  heirs,  executors,  and  administrators,  of  and 
from  all  manner  of  action,  and  cause  of  action,  suits  or  debts 
against  said  D.  Brown,  which  I  ever  had,  or  now  have,  from  the 
beginning  of  the  world,  to  the  day  of  the  date  of  these  presents. 
In  witness,  &c. 


GENERAL  POWER  OF  ATTORNEY. 

Know  all  men  by  these  presents,  That  I,  D.  Bond,  of 
Hartford,  do  hereby  ordain,  constitute,  and  appoint  D.  Brown,  of 
Hartford,  my  true  and  lawful  attorney  for  me,  and  in  my  name 
to  demand,  sue  for,  recover,  and  receive  all  sums  of  money  and 
debts  due  me,  and  all  claims  and  demands  against  all  persons 
whatever,  and  to  give  sufficient  acquittances  therefor,  and  to  ad 
just,  settle,  or  compound  all  debts,  or  demands,  and  to  institute 
proper  suits  for  the  recovery  thereof,  and  the  same  to  pursue  to 
final  judgment  and  execution;  and  I  hereby  ratify  and  confirm 
what  my  said  attorney  shall  lawfully  do  in  the  premises. 

In  witness  whereof,  I  have  hereunto  set  my  hand  and  seal,  this 
9th,  day  of  March,  in  the  year  of  our  Lord,  1838. 

D.  Bond. 


LEASE. 


Know  all  men  by  these  presents.  That  I,  W.  H.  I.,  of 
H.,  in  the  State  of  Connecticut,  have  demised  and  leased  to  A. 
H.,  of  said  town  and  State,  a  room  in  the  Union-Buildings,  for  a 
store,  for  the  term  of  two  years  from  the  first  day  of  April,  1838, 
for  the  yearly  rent  of  $500,  payable  in  yearly  payments. 

To  HAVE  AND  TO  HOLD  the  samo  for  the  term  of  two  years 
from  the  first  day  of  April,  1838,  and  to  return  the  same  in  the 
condition  in  which  it  was  received,  the  usual  wear  and  tear  of  the 
premises  only  excepted;  the  lessor  reserving  to  himself  the  right 
of  re-entry  on  the  premises  aforesaid,  provided  said  A.  H.  shall 
9  F* 


66  FORM    OF    BOND,    &C. 

fail  to  pay  the  yearly  rent  within  fifteen  days  after  the  same  shall 
have  become  due.  Said  A.  H.  further  agrees  that  he  will  admit 
no  other  person  into  said  room,  except  with  the  consent  of  the 
lessor. 

Dated  at  Hartford,  this  first  day  of  April,  1838. 

W.  H.  I. 

The  lessor  and  the  lessee  should  each  hold  a  similar  copy  of  a 
lease.  The  copy  which  the  lessor  holds  should  have  the  signa- 
ture of  the  lessee,  and  vice  versa. 


BILL  OF  SALE  OF  PERSONAL  CHATTELS. 

Know  all  men  by  these  presents.  That  I,  D.  Brown,  of 
Hartford,  for  the  consideration  of  $700,  received  to  my  full  satis- 
faction, of  D.  Bond,  of  Hackney,  do  bargain,  sell,  and  convey  to 
the  said  D.  Bond,  the  several  articles  of  furniture  and  property, 
contained  in  the  schedule  hereunto  annexed. 

1  dozen  chairs. 

1  sofa. 

1  black  horse  and  4  cows,  being  all  that  I  have. 

To  have  and  to  hold  the  said  goods,  &c.  unto  him,  the 
said  D.  Bond,  forever,  without  any  claim  or  demand  from  any 
person  under  me.  And  I,  the  said  D.  Brown,  do  for  myself,  my 
executors  and  administrators,  covenant  and  agree  with  the  said 
D.  Bond,  to  warrant  and  defend  to  him  the  said  goods,  &c. 
against  all  persons  whatever,  and  which  goods  I  have  delivered 
the  possession  to  the  said  D.  Bond. 

In  witness  whereof,  &c. 

[To  avoid  the  claim  of  creditors,  there  must  be  actual  delivery 
of  possession  of  personal  property,  by  the  vender  to  the  vendee.] 


FORM    OF  A   BOND. 

Know  all  men  by  these  presents,  That  I,  D.  Bond,  of 
the  city  of  Hartford,  and  State  of  Connecticut,  am  holden  and 
firmly  bound  to  D.  Brown,  of  the  aforesaid  City  and  State,  in  the 
sum  of  $3,000,  to  be  paid  to  said  D.  Brown,  or  his  certain  attor- 
ney, executors,   administrators  or  assigns ;  for  which  pajrment 


FORM    OF    INDENTURE,  <fec.  67 

well  and  truly  made,  I  bind  myself,  my  heirs,  executors  and  ad- 
ministrators, firmly  by  these  presents. 

Signed,  in  the  city  of  Hartford,  Connecticut,  March  4th,  1838, 
with  my  hand,  and  sealed  with  my  seal. 

D.  Bond. 


MORTGAGE  OF  PERSONAL  PROPERTY. 

Know  all  men  by  these  presents.  That  I,  D.  Bond,  of 
the  town  of  Hartford,  in  the  State  of  Connecticut,  for,  and  in  con- 
sideration of  the  sum  of  $8000,  lawful  money  of  the  United- 
States,  to  me  in  hand  well  and  truly  paid,  by  D.  Brown  of  New- 
Haven,  in  the  State  of  Connecticut,  the  receipt  whereof  I  do  here- 
by acknowledge,  have  granted,  bargained,  and  sold,  and  by 
these  presents  do  grant,  bargain,  and  sell,  unto  said  D.  Brown,  all 
he  goods  and  chattels  mentioned  in  the  schedule  here  under- 
written. 

To  HAVE  AND  TO  HOLD,  all,  and  singular,  the  said  goods  and 
chattels,  unto  the  said  D.  Brown,  his  executors,  administrators, 
and  assigns,  forever.  And  I,  the  said  D.  Bond,  for  myself,  &c., 
do  covenant  with  the  said  D.  Brown,  &c.,  that  I  have  a  full  right 
to  sell  and  convey  the  said  goods  and  chattels  to  the  said  D.Brown, 
and  that  I  will  warrant  and  defend  the  same,  and  every  part  there- 
of, against  the  legal  claims  of  all  persons  whomsoever.  Provided, 
nevertheless,  that  if  I,  the  said  D.  Bond,  my  executors,  admin- 
istrators, or  assigns,  or  any  of  them,  do,  and  shall  well  and  truly  pay, 
or  cause  to  be  paid,  unto  the  said  D.  Brown,  the  full  sum  of 
$8,000,  of  lawful  money  of  the  United-States,  with  lawful  interest 
for  the  same,  on,  or  before  the  16th  of  January,  1839,  then  these 
presents  shall  be  null  and  void  ;  otherwise,  to  remain  in  full  force 
and  eifect. 

In  witness  whereof,  &c. 


A    COMMON  INDENTURE. 

This  Indenture  witnesseth.  That  I,  John  D.  Bond,  of 
Hartford,  do  put  myself  apprentice  to  John  Miller,  to  learn  his 
art,  and  with  him  (after  the  manner  of  an  apprentice)  to  serve 


68  FORM  OF    INDENTURE. 

from  the  twentieth  of  May,  in  the  year  eighteen  hundred  and 
thirty-eight,  unto  the  full  end  and  term  of  seven  years  from  thence 
next  following,  to  be  fully  complete  and  ended :  during  which 
term  the  said  apprentice  his  said  master  faithfully  shall  serve,  his 
secrets  keep,  his  lawful  commands  every  where  gladly  do.  He 
shall  do  no  damage  to  his  said  master,  nor  see  it  be  done  by  others, 
but  that  he  to  his  power  shall  prevent  or  forthwith  give  warning 
to  his  said  master  of  the  same.  He  shall  not  waste  his  goods, 
nor  lertd  to  any  his  master's  goods  unlawfully.  He  shall  not 
play  at  cards,  dice,  tables,  or  any  other  unlawful  games,  whereby 
his  said  master  may  have  any  loss.  He  shall  not  haunt  taverns 
or  play-houses,  nor  absent  himself  from  his  master's  service,  day 
nor  night,  unlawfully.  But  in  all  things,  as  a  faithful  apprentice, 
he  shall  behave  himself  towards  his  master  and  his,  during  the 
said  term.  And  the  said  John  Miller,  his  said  apprentice  in  the 
same  art  of  printing,  which  he  useth,  by  the  best  means  that  he 
can,  shall  teach  or  instruct,  or  cause  to  be  taught  or  instructed  ; 
finding  unto  his  said  apprentice  sufficient  meat,  drink,  clothing, 
lodging,  and  all  other  necessaries,  during  the  said  term.  And  to 
the  true  performance  of  all  and  each  of  the  said  covenants  and 
agreements,  either  of  the  said  parties  bindeth  himself  unto  the 
other  by  these  presents. 

In  witness  w^hereof.  The  parties  aforesaid  have  hereunto 
set  their  hands  and  seals,  the  sixth  day  of  May,  one  thousand 
eight  hundred  and  thirty-eight. 

John  D.  Bond. 
John  Miller. 
(  Samuel  Jones. 

In  the  presence  0/  <  t->  t 

(  Paul  Jones. 
I  consent  to  the  covenant  of  my  son  with  John  Miller,  as  above. 

Lemuel  Bond. 


PART  II, 


BOOK-KEEPING 

BY 

DOUBLE-ENTRY. 


In  Single-Entry,  each  sum  is  posted  only  once  in  the  Ledger 
but  in  Double-Entry,  each  sum  is  posted  twice ;  that  is,  at  two 
or  more  accounts.  Hence,  Double-Entry.  In  a  large  and  com- 
plicated business,  the  latter  method  is  the  only  one  that  can  be 
adopted  with  safety.  More  writing  is  required  in  Double-Entry, 
and,  in  some  cases,  more  Books.  Generally,  the  Books  used  are 
the  Waste,  or  Day-Book,  Journal,  Ledger,  C ash-Book,  Bill- 
Book,  Invoice-Book,  Account- Current-Book,  and  Letter-Book, 
the  forms  and  designs  of  which  are  given  in  the  first  part  of  this 
work. 

Some  writers  on  the  science  of  accounts  have  evidently  given 
themselves  much  trouble  in  attempting  to  classify  accounts  under 
distinct  heads;  others  would  abridge  the  process  of  posting,  &c. 
By  such  attempts,  the  principles  of  equilibrium,  as  connected 
with  Book-keeping  have  been  foolishly  mystified;  and  conse- 
quently many  young  men  who  have  begun  the  study  of  Book- 
keeping, have  been  baffled,  discouraged,  and  have  abandoned 
their  purposes. 

One  writer  recommends,  in  posting,  to  leave  out  the  preposi- 
tions "To"  and  "By;"  another  the  interlining  of  the  Ledger, 
posting  only  the  date  and  the  sum,  and  another  the  interlining  and 
date  also. 

If  such  advice  were  designed  for  those  already  in  the  business 
of  keeping  accounts,  they  could  better  judge  of  the  expediency  of 
following  it,  but  when  elementary  books  are  written  on  that  plan, 
the  evil  may  be  great. 

It  is  diflicult  to  write  on  the  subject  of  accounts,  without  using 
the  technical  language  of  Book-keeping.  In  a  given  case,  Mer- 
chandise is  made  Dr.  "To  Cash;"  and  although  we  know  there 


72  DOUBLE-ENTRY. 

is  no  obligation  resting  between  the  two  accounts  themselves,  we 
make  use  of  this  language  because  it  more  readily  conveys  to  the 
mind  of  the  learner  the  principles  involved.  We  conside7'  the 
accounts  of  Stock,  Merchandise,  Real-Estate,  &c.,  responsible  for 
the  money,  goods,  &c.  which  have  been  disposed  of,  on  their  ac- 
count. When  I  pay  John  Olmsted  money  on  account,  I  make 
his  account,  in  the  Ledger,  Dr.  "To  Cash  ;"  so  if  I  pay  cash  for 
real-estate,  I  make  Real-Estate  Dr.  "To  Cash;"  or  if  I  pay 
cash  for  merchandise,  I  make  the  Merchandise- Account  Dr.  "  To 
Cash.".  The  same  is  true  of  Insurance,  Commission,  Shipping, 
Shipments,  &;c. 

When  John  Olmsted  pays  me  cash  on  account,  I  credit  the  ac- 
count of  John  Olmsted,  "By  Cash  ;"  so  when  Merchandise  pro- 
duces me  cash,  on  sales,  I  credit  the  Merchandise-Account  "  By 
Cash."  If  my  Ships,  Shipments,  Real-Estate,  &c.,  produce  me 
money,  notes,  merchandise,  either  for  freight,  sale,  or  returns,  I 
credit  the  said  account,  "By  Cash"  or  "Bills  Receivable,"  as  the 
case  may  be.  Thus  we  nominally  uiBke  one  account  Dr.  to 
another,  and  Cr.  one  by  another. 

If  I  give  John  King,  an  order  on  John  Olmsted  &  Co.,  for  $10 
worth  of  goods,  I  should  make  King's  account  in  my  Ledger,  Dr. 
"  To  John  Olmsted  &  Co.,"  and  make  John  Olmsted  &  Co's. 
account,  Cr.  "  By  John  King." 

Again,  if  I  sell  a  person  goods  and  take  in  payment  his  note,  I 
make  the  Bills  Receivable- Account,  in  the  Ledger,  Dr.  "To 
Merchandise ;"  and  make  the  Merchandise-Account,  Cr.  "By 
Bills  Receivable."  Therefore,  it  will  be  seen  that  we  treat  all 
the  accounts  in  the  Ledger  and  in  journalizing,  mainly  as  Personal 
Accounts,  making  each  nominally  accountable  for  what  it  receives, 
and  crediting  it  for  what  it  produces,  that  is,  for  what  I  receive 
under  that  head.  I  would  say,  "  Mr.  Merchandise,  I  shall  Dr. 
you  to  the  cash  I  have  paid  for  you,"  (when  I  have  bought  mer- 
chandise for  cash,)  "  and  I  will  Cr.  you  for  the  cash  you  have  paid 
me,"  (when  I  have  «old  merchandise  for  cash.)  Thus  I  would  say 
to  Mr.  Jones,  Mr.  Insurance,  Mr.  Bills  Payable,  &c. 

Note. — The  examples  given  on  the  several  following  pages  may  be  written  out  and  journalized  on 
slate,  black-board,  or  blank-book,  in  a  form  similar  to  those  on  Day-Book  and  Journal,  Set  1st., 
Double-Entry.  This  course  may  be  pursued  by  the  teacher,  till  the  nature  of  the  transactions  are 
fully  comprehended  and  the  pupil  can  record  them  with  facility  and  correctness. 


DOUBLS-ENTRY.  73 

If,  in  beginning  business,  or  at  the  time  of  opening  the  accounts 
in  the  Ledger,  John  Jones  owes  me  $300,  on  account,  I  make  his 
account  Dr.  to  300,  and  the  Stock-account  Cr.  By  $300. 

If  I  owe  John  James  $600,  on  account,  at  the  same  time,  I 
make  his  account  Cr.  By  $600,  and  make  the  Stock-account  Dr. 
To  $600 ;  so  if  I  have  Cash  $3,000, 1  make  in  hke  manner,  the 
Cash-account  Dr.  $3,000  and  Stock  Cr. ;  and  the  same  with  Mer- 
chandise, Bills  Receivable,  &c. 

ONTHE-CASHBOOK,  I 

Enter  the  Cash  in  hand  at  opening  the  Book,  and  every  sum 
you  afterward  receive,  on  the  Dr.  or  left  hand  page,  beginning 
each  entry  with  the  preposition  "  To ;"  and  on  the  Cr.  or  right 
hand  page,  every  sum  youpay,  with  the  preposition  "  5y."  The 
difference  of  the  two  sides  is  placed  on  the  smaller  side,  "  Bt/ 
Balance,'''  monthly ;  and  that  Balance  is  carried  to  the  Dr.  side, 
"  To  Balance,'"  showing  how  much  money  you  have  to  commence 
the  next  m.onth  with.     See  Cash-Book,  Set  3rd. 

The  Day-Book  is  sometimes  kept  in  the  narrative  style,  (which 
is  almost  indispensable  in  teaching)  and  sometimes  in  the  Journal 
form  of  Dr.  and  Cr.,  and  on  it  are  recorded  all  the  transactions 
which  are  not  more  properl}''  entered  on  the  subsidiary  Books. 
This  Book  first  gives  a  statement  of  the  Merchant's  affairs  at  the 
opening  of  the  Books,  defining  the  items  of  property  which  he 
commenced  business  with,  and  also  whatever  he  may  owe  at  that 
time — as, 

1.  If  I  begin  business  with  Cash  $3,000,  Merchandise  w^orth 
$fe,000  ;  James  Brown  owing  me  $2,000,  Notes  against  individu- 
als $2,000,  and  Real-Estate  worth  $5,000, 1  would  make  a  state- 
ment as  follows,  viz :  ^  ■ 

Cash,     .     .        .  Dr.  $3,000^ 
Merchandise,      .  Dr.     6,000 
James  Brown,  .  Dr.     2,000 
Bills  Receivable,  Dr.     2,000 
Real-Estate,       .  Dr.     5,000. 

2.  If  I  owe  at  the  same  time  $1,000  to  John  King,  and  $2,000 

on  Notes,  the  statement  is  as  follows  : 

^     .  .  ^     ^^^r.^{  John  Kinff  is       Cr.  $1,000 

Stocks         Dr.  $3  000  J  ^.„    ^^     \.    •     ^         'r^nn 

(  Bills  Payable  is  Cr.    2,000 

10  G 


^  Stock  is    Cr.  $18,000. 


74  ^  DOUBLE-ENTRr. 

The  above  statement  having  been  made,  the  follovi^ing  exam- 
ples maybe  regarded  as  uniformly  tru6  in  the  process  of  business. 
In  case  the  Day-Book  is  kept  in  the  Journal  form,  the  following 
will  show  the  method  in  which  the  entries  are  made,  wanting  the 
date  and  some  explanatory  remarks. 

3.  When  I  buy  Merchandise  on  my  note  for  $1,000 
Merchandise  is  Dr.,  and  Bills  Payable  are  Cr. . .     .     .     $1,000 

4.  When  I  buy  Merchandise  for  Cash,  $2,000 
Merchandise  is  Dr.,  and  Cash  is  Cr 2,000 

5.  When  I  buy  Merchandise  on  trust,  $,3000 
Merchandise  is  Dr.,  and  the  Person  who  trusted  me  is  Cr.  3,000 

6.  When  I  sell  Merchandise  for  a  note,  $1,000 

Bills  Receivable  are  Dr.,  and  Merchandise  is  Cr.   .     .     1,000 

7.  When  I  sell  Merchandise  for  Cash,  $8,000 

Cash  is  Dr.,  and  Merchandise  is  Cr 8,000 

8.  When  I  sell  Merchandise  on  trust,  $3,000 

The  person  trusted,  is  Dr.,  and  Merchandise  is  Cr.  .     .     3,000 

9.  When  Mdse.  is  shipped  on  adventure,  $2,000 
Adventure  (place  named,)  is  Dr.,  and  Mdse.  is  Cr.      .     2,000 

10.  When  I  give  W.  B.  Bond  my  note  for  his, 

(or  exchange  notes,)  for  $400 
Bills  Receivable  are  Dr.,  and  Bills  Payable  are  Cr.     .     .     400 

1 1 .  When  I  get  my  own  note  discounted  at  the  Bank 

or  elsewhere,  and  allow  a  discount  of  $20,  the 
whole  amount  of  the  note  being  $2,000 

Cash  is  Dr.,  and  Bills  Payable  are  Cr 1,980 

And  Profit  and  Loss  is  Dr.,  and  Bills  Payable  are  Cr. .     .     20 

12.  When  I  give  my  note  for  Insurance,  $50 

Insurance  is  Dr.,  and  Bills  Payable  are  Cr 50 

13.  When  I  give  my  note  for  Real-Estate,  2,000 
Real-Estate  is  Dr.,  and  Bills  Payable  are  Cr.     .     .     .     2,000 

14      When  I  give  Cash  to  repair  our  church,  $400 
Private  account  is  Dr.  and  Cash  is  Cr 400 


DOUBLE-ENTRY.  75 

1 5.  When  John  Brown  becomes  insolvent,  owing  me 

$1,000,  and  I  agree  to  lake  $50  on  the  $100, 

he  giving  me  the  balance  in  Cash, 

Cash  is  Dr.,  and  John  Brown  is  Cr $500 

And  Profit  and  Loss  are  Dr.,  and  John  Brown  is  Cr.  .     .     500 

16.  When  John  King,  consigns  goods  to  me,  to  sell, 

and  I  pay  for  Custom-House  duties,  my  note, 

$100,  and  charges  in  cash,  $50, 
King's  Consignment  is  Dr.,*  and  Bills  Payable  are  Cr.        100 
And  King's  Consignment  is  Dr.,  and  Cash  is  Cr.        .     .       50 

17.  When  I  purchase  ship  Mary,  for  Cash,  $8,000, 

Ship  Mary  is  Dr.,  and  Cash  is  Cr 8,000 

18.  When   I  expend  money  for  clothing  or  family 

stores,  $100 
Private  Account  is  Dr.,  and  Cash  is  Cr 100 

19.  When  I  give  my  note  on  ac't.  to  J.  Brown,  $,1000, 
John  Brown  is  Dr.,  and  Bills  Payable  are  Cr.     .     .     .     1,000 

20.  When  I  redeem  my  note  for  cash,  $2,000, 

Bills  Payable  are  Dr.,  and  Cash  is  Cr 2,000 

21.  When  I  receive  J.  Coming's  note  on  ac't.  $2,000, 
Bills  Receivable  are  Dr.,  and  John  Corning  is  Cr.  .     .     2,000 

22.  When  I  receive  pay't.  for  that  note,  in  Cash,  $2,000, 
Cash  is  Dr.,  and  Bills  Receivable  are  Cr 2,000 

23.  When  I  allow  John  Brown  discount,  $20 

Profit  and  Loss  is  Dr.,  and  John  Brown  is  Cr 20 

24.  When  I  give  the  Bank  John  Brovm's  note,  $1,000, 

and  receive  cash,  $990,  and  allow  discount,  $10, 

Interest  is  Dr.,  and  Bills  Receivable  are  Cr 10 

And  Cash  is  Dr.,  and  Bills  Receivable  are  Cr.      .     .     .     990 

*  When  there  are  several  Drs.  and  Crs.  in  the  same  transaction,  say,  "  Sundries  Dr.  to  Sun- 
dries." 

When,  in  the  same  transaction,  there  is  one  account  debited,  and  more  than  one  credited,  the 
account  is  made  Dr.  "  To  Sundries,"  without  specifying  the  accounts  credited ;  and  vice  versa, 
when  there  are  more  than  one  Dr.  and  but  one  Cr. 

In  all  the  cases,  where  the  preposition  "  To"  comes  before  Cash,  Merchandise,  Bills 
Payable  and  Receivable,  or  any  account ;  that  account  is  credited  "  By  the  account"  which  is 
debited.  ■ 


76  DOUBLE-ENTRY. 

25.  When  I  pay  John  Brown  cash  on  account,  $400, 
John  Brown  is  Dr.,  and  Cash  is  Cr., $400 

26.  When  John  Brown  pays  me  cash  on  account,  $300, 
Cash  is  Dr.,  and  John  Brown  is  Cr., 300 

27.  When  S.  Bond  draws  on  me,  on  time,  and  I 

accept  his  Draft,  $1,000, 
S.  Bond  is  Dr.,  and  Bills  Payable  are  Cr.,     ....     1,000 

^  28.     When  I  draw  on  Samuel  Tudor,  and  he  accepts 

my  Draft,  $700, 
Bills  Receivable  are  Dr.,  and  Samuel  Tudor  is  Cr.,    .     .     700 

29.  When  I  deposit  Cash  in  the  Exchange  Bank,  $800, 
Exchange  Bank  is  Dr.,  and  Cash  is  Cr., 800 

30.  When  I  draw  money  from  the  Exchange 

Bank,  $600, 
Cash  is  Dr.,  and  Exchange  Bank  is  Cr 600 

31.  When  I  give  the  Hartford  Bank  a  note  for  col- 

lection, $1,000 
Hartford  Bank  is  Dr.,  and  Bills  Receivable  are  Cr.     .     .  1,000 

32.  When  I  send  James  Humphrey,  New-York,  a  note 

for  collection,  $400, 
James  Humphrey  is  Dr.,  and  Bills  Receivable  are  Cr,   .     400 

33.  When  he  sends  me  in  return  a  check  on  the 

Hartford  Bank,  $400, 
Cash  is  Dr.,  and  James  Humphrey  is  Cr 400 

34.  When  I  sell  D.  W.  Clarke  a  Set  of  Exchange  on 

J.  Brown,  for  Cash,  $800, 
Cash  is  Dr.,  and  J.  Brown  is  Cr 800 

35.  When  I  lose  any  amount  of  money,  say,  $5, 

Profit  and  Loss  is  Dr.,  and  Cash  is  Cr 5 


36.     When  I  give  my  note  to  redeem  one  previously 
given,  $,100 
Bills  Payable  are  Dr.,  and  Bills  Payable  are  Cr.        .     .     100 


DOUBLE-ENTRY.  77 

37.  When  you  indorse  J.  Brown's  note  to  D.  Bond,  and 

take  Bond's,  in  return  for  $600, 
Bills  Receivable  are  Dr.,  and  Bills  Receivable  are  Cr.     .  $600 

38.  If  you  take  up  your  note  of  $2,000,  and  give  cash 

for  $1,000,  and  merchandise  $1,000, 
Bills  Payable  would  be  Dr.  $2,000,  and  Cash  Cr.  .     .     1,000 
and  Merchandise  Cr.         .......     1,000 

39.  If  you  buy  goods  for  $2,000,  and  pay  $1,000  in 

cash,   and  give  your  note  for  $1,000, 
Merchandise  would  be  Dr.  $2,000,  and  Cash  would  be  Cr.  1 ,000 
and  Bills- Payable  Cr .     1,000 

40.  When  you  buy  the  ship  Ocean  for  $8,000,  and 

pay  $3,000  in  cash,  and  the  balance  $5,000  in 
real-estate, 
Ship  Ocean  would  be  Dr.  $8,000,  and  Cash  would  be 

made  Cr 3,000 

and  Real-Estate  be  made  Cr 5,000 

41.  If  you  buy  Hartford  Bank-Stock  for  $30,000, 

and  pay  in  cash, 
Hartford  Bank-Stock  would  be  Dr.  $30,000,  and  Cash 

would  be  Cr 30,000 

42.  If  you  lose  property  by  fire,  worth  $8,000, 

Profit  and  Loss  is  Dr.  $8,000,  and  Merchandise  is  Cr.      8,000 

43.  If  you  buy  of  Wm.  H.  Imlay,  Merchandise  for 

$3,000  and  give  him  in  payment  a  Draft  on 
Wm.  Hungerford,  at  30  days. 
Merchandise  is  made  Dr.  $3,000,  and  Wm.  Hungerford 

is  made  Cr 3,000 

44.  If  Buck  &  Co.  draw  on  you  at  sight  a  Bill  of 

Exchange  $3,000, 
Buck  &  Co.  are  Dr.  $3,000,  and  Cash  is  Cr.      ...     3,000 

45.  If  Brown  and  Brothers,  London,  owe  you  $500, 

and  remit  to  you  a  Bill  of  Exchange  for  the 

same  on  R.  Watkinson  &  Co., 
G* 


78  DOUBLE-ENTRY. 

Bills  Receivable  would  be  Dr.  $500,  and  Brown  and 

Brothers,  Cr.     . f  500 

46.  When  you  sell  goods  belonging  to  Company  A, 

$300,  and  receive  in  payment  Cash, 
Cash  is  made  Dr.  $300,  and  Company  A,  is  made  Cr.    .     300 

47.  If  you  sell  a  Bill  of  Exchange  for  $800,  on 

Brown  and  Brothers,  at  2  per  cent,  premium, 
and  receive  Cash, 
Cash  would  be  made  Dr.  $816,  and  Brown  and  Brothers 

would  be  Cr 800 

And  Profit  and  Loss  Cr.     . 16 

[The  foregoing  suppositions  may  be  given  out  for  lessons,  and 
the  teacher  may  ask  for  the  Journal-Entry  of  each  separately.] 

To  THE  Student. 

In  what  cases  is  Cash  made  Dr.,  and  in  what  Cr.  ? 
In  what  cases  is  Merchandise  made  Dr.,  and  in  what  Cr.  ? 
In  what  cases  are  Bills  Receivable  made  Dr.,  and  in  what  Cr.  ? 
In  what  cases  is  a  Person's  account  made  Dr.,  and  in  what  Cr.  ? 
In  what  cases  are  Bills  Payable  made  Dr.,  and  in  what  Cr.  ? 
In  what  cases  is  Profit  and  Loss  made  Dr.,  and  in  what  Cr.  ? 
Also,  of  Private- Account,  Interest,  Stock,  Real-Estate,  Charges, 
Adventures,  Ships,  Sales,  and  Consignments  ? 

-  General  Rule  for  Journalizing. 

"  The  thing  received  is  made  Dr.,  and  the  thing  parted  with  is 
made  Cr." 

OR, 

"  The  person  who  trusts  you  is  made  Cr.,  and  the  person  whom 
you  trust  is  made  Dr." 


THE   NATURE    AND    DESIGN 

OF    THE 

LEDGER-ACCOUNTS    EXPLAINED 


Dr. 


Stock. 


Cr. 


Stock  is  used  instead  of  the  merchant's  name,  and  simply  shows  the  condition  of  his  affairs 
on  commencing  business,  or  beginning  the  year 


On  this,  Dr.  side,  is  entered  the  amount  of 
the  merchant's  debts  on  opening  his  Books, 


On  this,  Cr.  side,  is  entered  the  value  of  the 
merchant's  capital  on  opening  his  Books. 
Each  side  of  tliis  account  remains  with  no  increase  or  decrease,  till  the  Books  are  balanced, 
as  a  general  rule.    The  difference  of  the  Dr.  and  Cr.  goes  to  the  Balance-Account. 


Dr. 


Private-Account. 


Cr. 


This  account  should  show  the  merchant's  private  expenses,  such  as  expenses  for  family 
stores,  clothing,  &c.,  which  are  not  a  loss  on  his  business,  and  therefore  should  not  be  carried 
to  the  Profit  and  Loss-account. 


All  sums  paid  for  private  expenses  are  placed  on  the  Dr.  side  of  this  account,  and  the  amount 
of  them  transferred  to  the  Dr.  side  of  the  Stock-account,  To  Private- Account. 


Dr. 


Merchandise. 


Cr. 


This  account  shows  how  much  hag  been  paid,  and  how  much  received  for  Merchandise 


The  value  of  the  Merchandise  on  opening  the 
Books,  and  all  sums  paid  out  for  Merchandise, 
are  entered  on  this  side  of  the  account. 


All  amounts  received  for  Merchandise,  and 
the  value  of  what  remains  unsold  when  the 
Books  are  balanced,  are  entered  on  this  side  of 
the  account. 

The  debit  side  showing  the  expense,  and  the  credit  side  the  proceeds,  the  difference  of  the 
Dr.  and  Cr.  is,  of  course,  the  gain  or  loss  on  Merchandise,  and  is  entered  accordingly  to  the 
Profit  and  Loss-account. 

If  an  account  is  opened  with  any  branch  of  Merchandise,  and  none  of  it  sold,  the  amount  un- 
sold must  be  valued,  and  the  worth  placed  on  the  credit  side,  having  already  its  cost  on  the 
debit  side ;  the  same  if  part  is  unsold. 


What  is  the  design  of  the  Stock- Account,  and  Merchandise- .\ccount  ? 
What  is  posted  to  the  Dr.  side  of  Stock,  and  what  to  the  Cr.  1 
What  is  posted  to  the  Dr.  side  of  Merchandise,  and  wiiat  to  the  Cr.? 
What  is  the  design  of  Private- Account,  and  what  is  posted  to  the  Dr.  side  of  it  ?     And  where 
is  the  amount  of  it  transferred  1    Does  this  account  appear  on  a  partnership  Ledger  ? 


80 


LEDGER-ACCOUNTS    EXPLAINED. 


Dr. 


Insurance. 


Cr. 


This  acfiount  shows  how  much  is  paid  out,  and  how  much  is  received  ibr  Insurance. 


On  this  side,  all  sums  which  you  pay  or  al-       On  this  side  are  entered  all  sums  received 
low  for  Insurance,  are  entered.  for  Insurance. 

The  difference  of  the  Dr.  and  Cr.  goes  to  Profit  and  Loss. 


Dr. 


Interest. 


Cr. 


This  account  shows  how  much  is  paid  and  received  for  Interest. 


On  this  side  enter  all  sumswhich  you  pay  or       On  this  side  enter  all  sums  paid  or  allowed 
allow  for  Discount  or  Interest.                              to  you  for  Discount  or  Interest. 
The  difference  of  the  Dr.  and  Cr.  goes  to  Profit  and  Loss.     


Dr. 


Commission. 


Cr. 


Tliis  account  shows  how  much  is  paid  and  received  for  Commission 

1 


On  this  side  there  is  seldom  any  entry  made.  |    On  this  side  are  entered  all  sums  which  are 

j  received  for  commission. 

The  difference  of  the  Dr.  and  Cr.  goes  to  Profit  and  Loss. 


Dr. 


Charges. 


Cr 


Tliis  account  shows  how  much  is  paid  and  received  for  Charges. 


On  this  side  are  entered  all  sums  paid  for 
clerk-hire,  store-rent,  and  petty  expenses,  as 
advertising,  storage,  cartage,  porterage,  post- 
age, &c. 

The  difference  of  the  Dr.  and  Cr.  goes  to  Profit  and  Loss 


On  this  side  are  entered  all  sums  received 
for  such  charges  as  are  mentioned  on  the  debit 
side. 


What  is  the  design  of  the  Insurance  Account. 

What  sums  are  posted  on  the  Dr.  side  of  Insurance  ? 

What  sums  are  posted  on  the  Cr.  side  of  Insurance  ? 

The  teacher  may  ask  the  same  questions  on  the  Interest,  Commission  and  Charges-account. 


LEDGER-ACCOUNTS    EXPLAINED. 


81 


Dr. 


Cash. 


Cr. 


This  account  sliows  how  much  cash  has  been  received,  and  how  much  has  been  paid  awa;  r 


On  this  side  are  entered  the  amount  of  cash  \      On  this  side  are  entered  all  sums  of  cash 
carried  into  business,  and  all  sums  afterward  I  paid  away  or  disposed  of. 
received.  ' 

The  difference  of  the  Dr.  and  Cr.  being  the  cash  on  hand,  is  carried  to  the  Dr.  of  the  Balance- 
Sheet. 


Dr 


Bills  Receivable. 


Cr. 


Under  this  head  come  all  written  obligations  which  the  owner  of  the  Books  holds  against  other 


On  this  side  is  entered  the  amount  of  every       On  this  side  is  entered  the  amount  of  every 
bill  received,  of  the  above  description.  such  bill  disposed  of. 

The  difference  of  Dr.  and  Cr.  sides,  being  the  amount  of  bills  on  hand,  goes  to  the  Dr.  side  of 
the  Balance-sheet. 


10 


Dr. 


Bills  Payable. 


Cr. 


Under  this  title  come  all  the  written  obligations  which  the  owner  of  the  Books  has  given  to 
pay  money. 


On  this  side  is  entered  the  amount  of  all  his  On  this' side  is  entered  the  amount  of  every 
bills  which  he  has  redeemed.  bill  of  the  above  description,  which  the  owner 

of  the  Books  has  issued  or  parted  with. 

The  difference  of  Dr.  and  Cr.  being  the  amount  of  bills  wliich  are  yet  unredeemed,  goes  to 
the  Cr.  side  of  the  Balance-Sheet. 


11 


Dr. 


John  Doe. 


Cr. 


This  account  shows  how  much  John  Doe  owes  you,  and  the  Cr;  how  much  he  has  paid. 


On  this  side  is  entered  each  amount  which 
JohnDoeowestheowner  of  the  Books,  on  Book- 
Account. 


On  this  side  is  entered  each  amount  which 
John  Doe  has  paid  the  owner  of  the  Books,  on 
'  Book- Account. 


The  difference  of  the  Dr.  and  Cr.  of  the  account,  being  what  one  owes  the  other,  goes  to  the 
Balance-sheet.    The  same  is  true  of  all  Personal- Accounts. 


What-  is  the  design  of  the  Cash-Account  1 

What  is  posted  to  the  Dr.,  and  what  to  the  Cr.  side  of  the  Cash-Account  ? 
The  same  questions  may  be  asked  of  Bills  Payable,  Bills  Receivable,  and  John  Doe's  Account 
-  - 


LEDGER-ACCOUNTS    EXPLAINED. 


12 


Dr. 


United-States  Bank-Stock. 


Cr, 


This  account  shows  what  is  made  or  lost  on  U.  S.  Bank  Stock, 


On  this  side  is  entered  every  expense 
U.  S.  Bank-Stock. 


On  this  side  is  entered  all  sums  receivea  for 
U.  S.  Bank-Stock. 


The  difference  of  the  Dr.  and  Cr.  is  carried  to  the  Profit  and  Loss,  if  any  has  been  sold.    A 
similar  account  may  be  opened  with  Insurance,  Rail-Road,  or  other  Stocks. 


13 


Dr. 


Ship  Mary. 


Cr. 


This  account  shows  the  gain  or  loss  on  ship  Mary. 


On  the  debit  side  is  entered  the  value  of  the 
ship,  when  the  Books  were  opened,  and  every 
expense  afterward  incurred  on  her. 

The  difference  of  the  Dr.  and  Cr.  goes  to  Profit  and  Loss 


On  this  side  are  entered  the  sums  which  the 
ship  has  produced  for  freight,  and  her  value 
when  the  Books  are  balanced. 


14 


Dr.      Shipment  or  Adventure  to  Orleans. 


Cr. 


This  account  shows  what  is  made  or  lost  on  goods  shipped  to  Orleans 

i 


On  this  side  are  entered  all  sums  which  the 
Adventure  has  cost. 


On  this  side  are  entered  all  sums  which  the 
Adventure  has  brought  in  or  produced. 


When  an  Account-Sales  has  been  received,  the  difference  of  the  Dr.  and  Cr.  goes  to  Profit 
and  Loss.  If  none  has  been  received,  the  value  is  carried  to  the  Balance-Sheet,  the  same  as  the 
value  of  goods  unsold  in  store.    Thus  vnth  all  Adventures. 


15 


Dr. 


Cotton. 


Cr. 


This  account  shows  what  is  made  or  lost  on  Cotton  as  a  separate  branch  of  the  business. 


On  this  side  are  entered  all  sums  paid  out 
for  Cotton. 


On  this  side  are  entered  all  sums  whicli  Cot- 
ton has  produced,  and  the  value  of  what  is  un- 
sold when  the  Books  are  balanced. 


The  difference  of  the  Dr.  and  Cr.,  if  any  has  been  sold,  is  carried  to  Profit  and  Loss. 


What  is  the  design  of  the  United-States  Bank-Stock- Account  I 

What  is  posted  to  the  Dr.  side  of  the  Bank-Stock- Account  ? 

What  is  posted  to  the  Cr.  side  of  that  account  ? 

The  same  questions  may  be  asked  of  Ship  Mary,  Cotton,  and  Adventure  to  Orleans. 


LEDGER-ACCOUNTS    EXPLAINED. 


83 


16 


Dr. 


Swan's  Consignment. 


Cr. 


This  account  shows  how  much  has  been  paid  on,  and  received  for  Swan's  goods. 


On  this  side  is  entered  all  expense  which  I  On  this  side  are  etitered  all  the  siiins  wnich 
have  incurred  on  Swan's  goods.  [  the  goods  have  produced 

The  difference  of  the  Dr.  and  Cr.  goes  to  the  credit  of  Swan's  account.  Moneys  advanced  on 
goods  consigned,  should  be  entered  to  the  debit  of  the  consigner's  account,  and  not  to  the  debit 
of  the  consignment-account.  The  account  must  be  closed  at  the  balancing  of  the  Books,  not 
regarding  what  is  unsold. 


17 


Dr. 


Hartford  Bank. 


Cr. 


This  is  kept  the  same  as  a  Personal-Account. 


On  this  side  is  entered  each  sum  deposited  in       On  this  side  all  sums  drawn  from  the  Hart- 
the  Hartford  Bank.  i  ford  Bank. 

The  difference  of  the  Dr.  and  Cr.  goes  to  the  Balance-Account. 


18 


Dr. 


Profit  and  Loss. 


Cr. 


This  account  is  kept  as  a  synopsis  of  the  gains  and  losses  on  the  whole  business, 


On  this  side  are  entered  all  the  sums  gained 
on  the  business. 


On  this  side  are  entered  all  losses  sustained 
j  in  the  business . 

The  difference  of  the  Dr.  and  Cr.  of  this  account,  showing  the  net  gain  or  loss  on  the  whole 
business,  is  carried  to  the  proper  side  of  the  Stock- Account ;  if  a  loss,  on  the  Dr.  side ;  if  a  gain, 
on  the  Cr.  side. 


19 


Dr. 


Loan-Account. 


Cr. 


The  design  of  this  account  is  to  show  the  sums  of  money  borrowed  and  lent. 


On  this  side  enter  all  sums  of  money  which 
you  have  lent,  or  paid,  having  been  borrowed. 


On  this  side,  enter  all  sums  which  you  have 
borrowed,  and  all  lent  money  which  has  been 
paid  you. 


This  account  supersedes  the  necessity  of  trusting  the  memory  with  moneys  lent,  or  of  keep- 
ing memorandums  of  the  same,  which  are  liable  to  be  mislaid  or  lost. 


What  is  the  object  of  an  account  with  Swan's  Consignment  ? 
What  is  posted  to  the  Dr.  side  of  that  account  1 
What  is  posted  to  the  Cr.  side  of  that  account  ? 
The  same  questions  may  be  asked  of  the  others. 


84 


LEDGER-ACCOUNTS    EXPLAINED. 


20 


Dr. 


Suspense-Account. 


Cr. 


The  design  of  this  account  is  to  show,  at  the  close  of  the  year,  the  amount  of  doubtful  debts  ; 
that  is,  those  debts  and  notes  which  there  is  not  much  hope  of  collecting,  but  which  you  are  un- 
willing to  carry  to  the  Profit  and  Loss-Account,  until  you  learn  something  more  decisive 
resx)ecting  their  payment 


On  this,  Dr.  side,  enter  all  such  debts  and  On  this,'  Cr.  side,  enter  all  debts  and  notes  of 
notes  as  come  under  the  above  description.         the  above  description,  as  may  have  been  paid 

It  is  not  advisable,  ordinarily,  to  transfer  doubtful  debts  to  the  above  account  except  at  the 
balancing  the  Books,  as  something  may  transpire,  in  the  mean  time,  which  shall  supersede 
the  necessity  of  making  such  a  transfer.  In  case  that  this  is  done,  the  account  from  which  any 
amount  is  transferred  to  the  Suspense-Account,  is  credited  "  By  Suspense-Account,"  and  the 
Suspense- Account  is  made  Dr.  to  the  account  which  has  now  been  credited. 


21 


Dr. 


Collector  of  Customs. 


Cr. 


I 

The  design  of  this  account  is  to  show  the  ariiount  of  bonds  given  at  the  Custom-IIouse  for 
duties  on  goods  imported.  But  as  these  bonds  are  in  reality  Bills  Payable,  an  account  of 
them  should  ordinarily  be  kept  underthe  title,  "Bills  Payable." 


22 


Dr. 


Debentures. 


Cr. 


The  design  of  this  account  is  to  show  the  amount  of  bonds  which  the  Custom-House  has 
given  you  for  the  Drawback  of  duties  on  goods  imported,  when  they  shall  have  been  exported 
according  to  law. 

On  all  Wares  and  Merchandise  which  have  been  imported,  and  on  which  duties  have  been 
paid,  in  case  they  are  again  exported,  the  Importers  are  entitled  to  a  Bond  from  the  Custom- 
House,  for  the  amount  jiaid  on  the  same.  There  are  certain  restrictions  in  this  Act,  for  which 
see  Laws  of  the  United-States,  Vol.  iv.  page  396. 

TERMS  OF  CREDIT  GIVEN  TO  THE  IMPORTER,  ON  GOODS  IMPORTED. 

All  sums  not  exceeding  $50,  shall  be  paid  immediately.  On  all  Goods,  Merchandise  and  Wares, 
the  produce  of  the  West-Indies,  3  for  one  half,  and  6  calendar  months  for  the  other  half,  (salt  ex- 
cepted, which  is  entitled  to  9  months.)  On  all  wines,  12  months;  on  all  other  Goods.  Wares 
or  Merchandise,  (except  salt  and  teas  imported  from  Europe)  1-3  in  8  months,  1-3  in  10  months, 
and  1-3  in  12  months.  On  all  Goods,  Wares,  and  Merchandise,  (other  than  wines,  salt,  and 
teas  imported  from  any  place  than  Europe  and  the  West-Indies,)  1-2  in  G  months,  1-4  in  9 
months,  and  1-4  in  12  months  from  the  date  of  each  respective  importation. 

The  bond  or  bonds  given  shall  include  one  or  more  sureties,  to  the  satisfaction  of  the  col- 
lector of  the  district  where  the  said  duties  shall  accrue.  These  bonds  are  to  be  paid  in  pre- 
ference to  all  other  debts,  in  case  the  giver  of  these  bonds  becomes  insolvent ;  and  the  insolvent 
individual  cannot  assign  his  property  to  creditors,  to  seclude  the  claims  of  government  on 
the  bonds. 


What  is  the  design  of  the  Suspense- Account  ? 
What  is  iwsted  on  the  Dr.  side  of  that  account  ? 
What  is  posted  on  the  Cr.  side  of  that  account  ? 
Let  the  same  questions  be  asked  on  the  other  accounts. 


LEDGER-ACCOUNTS    EXPLAINED. 


85 


Dr. 


Merchandise,  Co.  A. 


Cr. 


When  two  parties,  not  connected  in  their  general  business,  buy  goods  to  speculate  upon,  the 
party  that  takes  the  goods  to  sell,  keeps  an  account,  if  it  be  the  first  speculation  of  the  kind, 
under  the  head  of  "  Merchandise,  Company  A." ;  if  it  be  the  second  speculation  of  the  kind,  un- 
der the  head  "  Merchandise,  Company  B.,"  axid  so  on  alphabeticalli/. 

The  party  that  sells  the  goods,  charges  commission  on  the  whole  sales,  as  if  he  were  not 
an  owner. 


On  this  side  is  entered,  first,  the  sum  which       On  this  side  is  entered  the  amount  of  all  the 
the  owner  of  the  Books  pays  for  his  share  of  the    sales, 
goods,  and  also  every  expense  which  is  after- 
ward incurred  on  the  same. 

At  the  close  of  the  sales,  the  sum  of  the  expenses,  except  the_^r5/  cost,  is  subtracted  from  the 
sum  of  the  sales,  and  the  remainder  is  divided  with  the  other  party,  in  proportion  to  his  invest- 
ment.   The  account  is  then  closed  like  the  General  Merchandise- Account. 


Suppose  the  owner  of  the  Books,  Samuel  Hall,  purchases 
goods  with  Samuel  Colt,  each  one  half,  amounting  to  $9,450,  and 
S.  Hall  takes  the  goods  into  his  store  to  sell,  each  to  share  equally 
in  the  gain  or  loss.  Hall  pays  for  his  half  in  his  note,  at  60  days, 
for  $3,000,  and  cash,  $1,725. 

Hall  first  sells  to  S.  Porter  a  part  of  the  above  goods  for  cash, 
amounting  to  $1,732   50. 

Sold  J.  Brown,  on  his  note  at  30  days.  Merchandise,  Co.  A., 
amounting  to  $3,000. 

When  the  account  was  closed,  there  were  on  hand  goods  un- 
sold, amounting  to  $8,000.     Commission  on  sales,  $236  62. 

Hall  opens  an  account  under  the  head  Merchandise,  Co.  A., 
with  other  accounts  necessary. 

1st.  Hall  debited  the  Account,  Co.  A.,  with  half  the  expense, 
that  is,  what  he  paid,  $4,725. 

2nd.     He  credits  the  account  for  the  two  sales,  $4,732  50. 

3rd.  He  debits  the  account  for  the  commission,  $236  62,  on 
sales. 

4th.  He  credits  the  account  of  S.  Colt,  for  one  half  the  now 
difference  of  the  two  sides,  $2,247  94. 

5th.  He  debits  the  account,  Co.  A.,  $2,247  94,  which  he  cre- 
dited Colt's  account  with. 

6th.  He  credits  the  account  for  his  half  the  goods  unsold, 
$4,000,  Colt  taking  his  half  away,  or  leaving  it  for  farther  sales. 

7th.  He  debits  the  account  to  Profit  and  Loss  for  the  now  dif- 
ference of  the  two  sides,  which  is  Hall's  gain  on  the  speculation.   ] 

H 


86 


LEDGER-ACCOUNTS    EXPLAINED. 


The  following  are  the  Ledger-entries  which  would  necessari- 
ly grow  out  of  such  a  Company- Account : 


Dr.                       Merchandise,  Co.  A.                       Cr, 

To  Bills  Payable,    .    . 

"  Cash, 

"  Commission,     .    . 
"  Samuel  Colt,    .    . 
"  Profit  and  Loss,    . 

3,000  0 
1,725  0 
236  6 
2,247  9 
1,522  9- 

0 
0 
2 
4 
1 

V 

By  Cash,  .    . 
"  Bills  Receivable,   . 
"  Balance,  .... 

1,73S 
3,00C 
4,000 

150 
00 
00 

50 

8,732  5 

8,732 

'                        ' 

Dr.                                    Cash.                                     Cr. 

ToMd8e.,Co.A.,  .    . 

1,732' 5 

)i 

By  Mdse.,  Co.  A.,  .    . 

1,725 

00 

Dr.                           Bills  Payable.                            Cr. 

I       , 

By  Mdse.,  Co.  A.,  .    . 

3,000 

00 

Dr.                         Bills  Receivable.                         Cr. 

To  Mdse.,  Co.  A.,  .    . 

3,000  0( 

) 

Dr.                            Samuel  Colt.                             Cr. 

1 

By  Mdse.,  Co.  A.,  .    . 

2,247 

I 

94 

Dr.                         Profit  and  Loss                           Cr. 

By  Mdse.,  Co.  A.,  .    , 

1.522 

94 

Dr.                              Commission.                               Cr. 

By  Mdse.,  Co.  A.,       . 

236 

S2 

ON  OPENING  BOOKS 


The  process  of  opening  a  set  of  Books,  being  considered  pecu- 
liarly difficult,  I  propose  to  answer  some  of  the  questions  which 
are  frequently  asked,  and  anticipate  others  which  may  suggest 
themselves  to  the  mind  of  the  learner.  There  is  not,  however, 
so  much  mystery  in  this  part  of  Book-keeping,  as  many  appre- 
hend, and  I  attribute  the  many  interrogations  on  this  point  to  the 
fact  that  no  writer  on  the  science  of  Accounts,  has  definitely 
enough  pointed  out  the  why  and  wherefore.  It  may  be  well  to 
remark  in  the  outset,  that  the  Stock-account  personifies  the  mer- 
chant who  owns  the  Books.  He  says,  I,  (Stock)  credit  myself 
with  all  that  I  carr}^  into  business,  and  debit  myself  with  all  that 
I  owe. 

Some  writers  on  this  subject,  reconmiend  that  each  partner 
should  first  be  debited  "  To  Stock,"  for  the  sums  which  they 
respectively  subscribe,  and  Stock  be  credited  "  By  Sundries,"  for 
the  aggregate  subscriptions.  And  when  the  subscriptions  are 
paid,  each  partner  is  credited  "  By  Cash,"  for  the  amount  he 
pays  in,  (or  any  goods  which  he  may  furnish)  and  debit  the  Cash 
(or  Merchandise)  account  to  the  partner  who  pays  it. 

The  better  mode  is  to  open  the  Ledger-accounts  as  if  there 
were  one  person  in  trade,  and  enter  the  respective  investments  to 
the  credit  of  each  partner's  account  in  the  Private -Ledger.  See 
Private-Ledger,  3d  Set. 

When  it  is  necessary  to  open  a  new  account,  it  need  not  be  done 
with  ink  at  the  time,  but  in  pencil  mark.  The  posting  may  be 
done  under  such  heads  till  some  favorable  opportunity,  when  they 
may  all  be  written  out  neatly  in  ink. 


88 


ON    OPENING    BOOKS. 


EXAMPLE  1. 


Suppose  you  have,  on  commencing  business,  a  capital  of  $13- 
000,  of  which  $5,000  is  in  Merchandise,  and  $8,000  in  Cash, 
how  would  you  open  your  Books  ? 

Ans.  By  crediting  Stock  By  Sundries^  $13,000,  and  debiting 
CashT'o>S^ocyfc,$8,000and  debiting  Merchandise  To  Stock,  $5,000. 

Thus, 


Dr.                                  Stock.                                    Cr. 

■ 

By  Sundries,      .    .     . 

13,000 

00 

Dr.                                    Cash.  ;                                   Cr. 

To  Stock,      .... 

8,000 

00 

Dr.                             Merchandise.                              Cr. 

To  Stock,      .    .    .    • 

5  000 

00 

EXAMPLE    II. 


Suppose  you  have  the  above  capital,  (as  in  exam.ple  1st.,)  but 
owe  on  your  notes  $2,000,  how  would  you  open  your  Books  ? 

Ans.  In  the  same  manner  (as  in  example  1st.,)  except  you 
will  debit  Stock  To  Bills  Payable,  $2,000,  and  credit  Bills 
Payable  By  Stock,  $2,000. 

Thus, 


ON    OPENING    BOOKS. 


Dr.                                    Stock.                                    Cr. 

To  Bills  Payable,     .    . 

2,000 

00 

By  Sundries,   .... 

13,000 

00 

Dr.                                      Cash.                                      Cr. 

To  Stock,   ... 

8,000 

00 

Dr.                             Merchandise.                               Cr. 

To  Stock, 

5,000 

00 

Dr.                           Bills  Payable.                              Cr. 

By  Stock,     .    .     ... 

2,000 

1 

00 

example    III. 


Suppose  you  assume  Example  2nd,  with  an  addition  of  the 
capital,  $3,000  of  Connecticut  River  Bank-Stock,  and  also  a  debt 
which  you  owe  to  William  H.  Imlay,  $1,000,  how  would  you 
open  your  Books  ? 

Ans.     As  in  Example  2nd,  except  you  debit  Connecticut  River 

Bank-Stock,  "  To  Stock,"  $3,000  ;  debit  Stock  "  To  Sundries," 

$3,000;  credit  Wm.  H.  Imlay  "By  Stock,"  $1,000;  and  credit 

Stock  "By  Sundries,"  $16,000. 

12  H* 


90 


ON    OPENING    BOOKS. 


. .. 

Dr.                                   Stock.         ,                           Cr. 

To  Sundries,   .... 

3,000  00 

By  Sundries,    .      .      . 

16,000  00 

Dr.                                     Cash.                                     Cr. 

' 

To  Stock, 

8,000  0( 

) 

Dr.                              Merchandise.                             Cr. 

To  Stock, 

5,000  0 

0 

1 

Dr.                            Bills  Payable.                              Cr. 

By  Stock, 

2,000  00 

Dr.            Connecticut  River  Bank-Stock.             Cr. 

. 

To  Stock, , 

J 

.      3,000  0 

\        1       i 

0 

\  1 

^ 

!    II 

Dr.                       William  H.  Imlay                          Cr. 

By  Stock, 

1,000  00 

GN    OPENING    BOOKS. 


91 


i:XA.MPLE    IV. 


Suppose  a  man  commence  business  under  the  following  circum- 
stances, viz  :  He  having  no  capital,  borrows  on  his  notes,  $20,000, 
of  which  he  expends  $10,000  for  Merchandise,  and  the  remain- 
der is  cash.     How  does  he  open  his  Books  ? 

Ans.  He  debitsCash  "ToStock,"  $10,000;  debits  Merchandise 
"  To  Stock,"  $10,000,  and  Stock  "  To  Bills  payable,"  $20,000  ; 
credits  Stock  "  By  Sundries,"  $20,000,  and  credits  Bills  Payable 
"  By  Stock,"  $20,000. 


D7\                                    Stock.                                    Cr. 

To  Bills  Payable,     .    . 

20,000 

00 

By  Sundries,   .... 

20,000 

00 

Dr.                                    Cash.                                     Cr. 

To  Stock, 

10,000 

00 

1 

Dr.                             Merchandise.                                Cr. 

To  Stock, 

10,000 

00 

■ 

Dr.                           Bills  Payable.                              Cr. 

By  Stock,     .... 

20,000 

00 

Here  is  an  equal  amount  on  the  Dr.  and  Cr.  side  of  the  Stock 
account,  showing  you  that  the  merchant  owes  as  much  as  he  car 


92 


ON    OPENING    BOOKS. 


ries  into  business,  and  his  Cash  and  Merchandise-accounts  show 
in  what  his  property  is,  and  Bills  Payable-account  shows  where 
the  debit  is. 

EXAMPLE    V. 

Suppose  a  merchant  commence  business  under  the  following 
circumstances,  viz  :  He  has  a  capital  of  $20,000,  $6,000  of  which 
is  in  Merchandise,  which  he  bought  of  A.  King  &  Co.,  New- York, 
at  six  months  credit ;  his  store,  valued  at  $8,000,  for  which  he  has 
given  his  note,  and  the  balance,  $6,000,  is  in  cash.  How  would 
he  open  his  Books  ? 

Ans.  He  debits  Stock,  $14,000;  Cash,  $6,000;  Real-Estate, 
$8,000 ;  and  Merchandise,  $6,000.  Credits  Stock,  $20,000;  Bills 
Payable,  $8,000,  and  A.  King  &  Co.  $6,000. 


Dr.                                    Stock.                                    Cr. 

> 

To  Sundries,    .    .    . 

14,000  Ot 

By  Sundries,  .... 

20,000 

00 

Dr.                                     Cash.                                     Cr. 

To  Stock, 

6,000  0 

5 

> 

Dr.                             Real-Estate.                               Cr. 

To  Stock, 

8,000  0 

0 

Dr.                          Bills  Payable.                              Cr. 

' 

By  Stock, 

8,000 

00 

ON    OPENING    BOOKS. 


93 


Dr.                             Merchandise.                              Cr, 

To  Stock, 

6.000 

00 

1 

Dr.                            A.  King  &  Co.                             Cr. 

By  Stock,     .... 

6,000 

00 

EXAMPLE    VI. 


If  three  men  commence  a  business  as  follows,  viz  :  A,  brings 
into  the  business  $8,000,  in  Merchandise  ;  B,  $5,000  in  Cash,  and 
C,  $7,000  in  notes  which  he  holds  against  sundry  individuals — 
How  would  they  open  their  Books  ?     Thus, 


Dr.                                     Stock.                                     Cr. 

By  Sundries,    .    .    .    , 

1 

20,000 

00 

Dr.                               Merchandise.                              Cr. 

To  Stock, 

8,000  OC 

) 

Dr.                                      Cash.                                      Cr. 

To  Stock, 

5,000  0( 

) 

94 


ON    OPENING    BOOKS. 


Dr. 


Bills  Receivable. 


Cr. 


To  Stock, 


7,000  00 


Taking  Examples  6th,  of  A,  B,  and  C,  how  would  they  open 
their  Private-Ledger  ? 

Ans.  They  would  debit  Stock  "  To  Sundries,"  $20,000,  and 
credit  A,  "  By  Stock,"  $8,000  ;  credit  B,  "  By  Stock,"  $5,000  ; 
credit  C,  "  By  Stock,"  $7,000. 


Dr.                                   Stock.                                     Cr. 

To  Sundries,  .... 

20,000 

00 

Dr.                                       A.                                         Cr. 

^ 

By  stock, 

8,000 

00 

Dr.                                       B.                                         Cr. 

By  Stock, 

5  000 

00 

Dr.                                         C.                                          Cr. 

t 

By  Stock,    .    .    .    .    . 

7,000 

00 

INTRODUCTORY   EXERCISE. 


When  'the  learner  has  committed  to  memory  or  carefully 
studied  the  foregoing  explanations  of  the  Ledger-accounts,  he 
should  be  practiced  in  examples  like  the  following. 

The  Journal-entries  and  dates  are  here  omitted,  that  the  pro- 
cess of  opening,  posting,  and  closing,  or  making  equal  several 
accounts,  may  be,  as  far  as  possible,  simplified  and  brought  with- 
in the  comprehension  of  the  merest  tyro.     Thus — 

1st.  If  you  begin  business  with  a  capital  of  $8,000,  in  cash, 
what  accounts  in  the  Ledger  are  affected  ? 

Ans.  Cash  is  debited  "  To  Stock,"  $8,000,  and  Stock  is  Cr. 
"  By  Cash,"  $8,000. 

2nd.  If  you  buy  Merchandise  on  your  note  for  $4,000,  what 
accounts  will  be  affected  ? 

Ans.  Merchandise  is  Dr.  "  To  Bills  Payable,"  $4,000,  and 
Bills  Payable  Cr.  "  By  Merchandise,"  $4,000. 

3rd.  If  you  sell  Merchandise  to  Brown  &  Parsons,  on  account, 
$3,000,  what  accounts  are  affected  ? 

Ans.  Brown  &  Parsons  are  Dr.  "  To  Merchandise,"  $3,000, 
and  Merchandise  Cr.  "  By  Brown  &  Parsons,"  $3,000. 

4th.  If  you  buy  Merchandise  for  cash,  $2,000,  what  accounts 
are  affected  ? 

Ans.  Merchandise  is»Dr.  "  To  Cash,"  $2,000,  and  Cash  is  Cr. 
"  By  Merchandise,"  $2,000. 

5th.  If  you  sell  Savage  &  Stockbridge,  Merchandise  for 
$4,000,  on  their  note,  at  60  days,  what  accounts  are  affected  ? 

Ans.  Bills  Receivable  is  Dr.  "To  Merchandise,"  $4,000,  and 
Merchandise  Cr.  "  By  Bills  Receivable,"  $4,000. 

6th.  If  the  Connecticut  River  Bank  discounts,the  above  bill, 
$4,000,  paying  you  cash,  $3,960,  and  retaining  the  discount,  $40, 
what  accounts  are  affected  ? 

Note— The  student  may  be  required  to  write  out  and  journalize  the  above  transactions  on  a 
black-board,  slate,  or  paper,  in  the  same  form  that  they  would  be  recorded  and  journalized,  in  actual 
business. 


96 


INTRODUCTORY    EXERCISE. 


Ans.  Cash  is  Dr.  "  To  Bills  Receivable,"  $3,960,  and  Profit 
and  Loss  are  Dr.  "  To  Bills  Receivable,"  for  the  discount,  $40, 
and  Bills  Receivable  is  Cr.  "By  Sundries,"  $2,000. 

On  this  and  the  following  page,  will  be  seen  all  the  foregoing 
sums  carried  to  their  respective  accounts,  and  each  account  is 
closed,  exhibiting  a  Ledger  in  miniature. 

The  credit  side  of  the  Merchandise -account  is  the  greatest  by 
one  thousand  dollars;  consequently,  you  have  realized  $1,000 
more  than  the  expense,  which  is  transferred  to  the  credit  of  Profit 
and  Loss.  You  lost,  on  the  discount  of  Savage  &  Stockbndge's 
note,  $40,  which  is  carried  to  Dr.  of  Profit  and  Loss- account. 
The  difierence  of  the  two  sides  of  Profit  and  Loss  is  $960,  which, 
being  the  net  gain  on  the  business,  is  carried  to  the  Cr.  side  of 
the  Stock-account.  The  net  gain,  $960,  added  to  $8,000,  which 
you  were  worth  when  the  accounts  were  opened,  shows  your 
present  worth  to  be  $8,960.  The  Balance-Account  shows  on  the 
Dr.  side  that  you  Jiave  $9,960  in  cash,  $3,000  in  a  debt  owing 
you  by  Brown  &  Parsons,  and  on  the  Cr.  side  $4,000,  which 
you  owe  on  a  note,  which  subtracted  from  $12,960,  leaves  $8,960 
your  present  property. 

This  example  and  explanation  may  appear  puerile  to  the  skill- 
ful accountant,  yet  the  beginner  will  find  in  them  much  that  is  in- 
structive, and  if  carefully  examined,  will  impart  to  him  more 
information  than  he  could  obtain  from  any  other  source  in  the 
same  time. 


Dr»                                    Stock.                                     Cr. 

To  Balance,    .... 

8,960 
8,960 

00 
00 

By  Cash, 

Profit  and  Loss,  .    .    . 

8,000 
96J 

8,960 

00 
00 

00 

Dr.                                    Cash.                                     Cr. 

• 

To  Stock, 

"  Bills  Receivable,      . 

8,onr 

3,960 
11,960 

00 
00 

By  Merchandise,     .    . 
"  Balance,    .... 

2,000 
9,960 

11,960 

00 
00 

00 

INTRODUCTORY  EXERCISES. 


97 


Dr.                             Merchandise.                              Cr. 

To  Bills  Payable,     . 

"  Cash, 

"  Profit  and  Loss,      . 

4,000  00 
2,000  00 
1,000  (10 

7,000  00 

By  Brovra  &  Parsons,  . 

"  Bills  Receivable,      , 

3,000  00 
4,000  00 

7,000  00 

Dr.                         Profit  and  Loss.                           Cr. 

To  Bills  Receivable,     . 
♦'  Stock, 

40  0( 
960  01 

(    1,000  0( 

) 

) 

) 

By  Merchandise,     .    . 

1,000  00 

1,000  00 

Dr.                         Bills  Receivable.                          Cr. 

To  Merchandise,     .    . 

4,000  (K 

) 

By  Sundries,    .... 

4,000  00 

Dr.                            Bills  Payable.                             Cr. 

To  Balance,  .... 

4,000  0{ 

) 

By  Merchandise,  .    . 

4,000  00 

Dr.                        Brown  &  Parsons.                         Cr. 

1 

To  Merchandise,      •     . 

a,000  00 

By  Balance,    .... 

3,000  00 

Dr.                                 Balance.                                   Cr. 

To  Cash, 

"  Brown  &  Parsons, . 

9,960  OC 
3,001  OC 

Effects. 
Debt. 

By  BiUs  Payable,  .    . 

4,000  00 

12,960  OC 
4,000  OC 

*  8,960  01 

*  Net  property,  equaling  the  balance  of  Stock-account. 

13 


REMARKS    ON    BOOKS,    SET   I. 


Books,  Set  1st.,  contains  a  record  of  such  transactions  as  must 
occur  in  almost  every  Merchant's  and  Tradesman's  business. 

The  Cash  and  other  transactions  are  recorded  together  on  the 
Day-Book,  so  that  the  whole  business  of  the  Merchant  appears  on 
this  book,  and  of  course,  each  entry  is  journalized  before  posting. 

Although  the  Merchant  generally  keeps  a  C ash-Book,  it  is  in 
many  cases  omitted,  as  the  omission  is  thought  to  render  the  pro- 
cess of  making  the  Journal-entries  and  posting  more  simple  than 
to  have  tw^o  books  contain  the  same  business.  As  it  is  the  design 
of  the  author  to  render  this  set  of  books  as  simple  as  may  be, 
and  to  illustrate  clearly  the  principles  involved  in  Double-Entry, 
every  thing  not  absolutely  necessary  is  omitted.  Each  individual, 
who  copies,  journalizes,  posts,  and  takes  the  Balance-Sheet,  should 
consider  the  business  his  own — that  he  starts  his  business  with 
the  capital  there  specified — that  he  considers  each  record  there 
made,  as  made  by  himself  and  not  pass  over  it  till  he  fully  compre- 
hends it — that  he  takes  the  Balance-Sheet  as  if  he  were  collecting 
the  items  of  his  own  property,  at  the  close  of  his  business,  or  at 
any  given  period. 

The  Day-Book  shows,  in  an  historical  form,  a  statement  of  the 
Merchant's  property  and  debts  in  beginning  business,  and  all  the 
transactions  supposed  to  occur  in  one  month.  All  the  brevity 
which  is  consistent  with  perspicuity,  is  exhibited  in  the  Day- 
Book.  Every  transaction  recorded  on  the  Day-Book  has 
deduced  from  it  two  or  more  Journal-entries,  which  are  placed  in 
the  Dr.  and  Cr.  columns  of  the  Journal.  From  the  Journal,  each 
of  the  entries  is  posted  to  its  respective  account  in  the  Ledger, 
which  is  the  final  transfer,  and  where  all  of  the  same  kind  may  be 
found  together. 


DAY-BOOK  AND  JOURNAL. 

Set  II, 
DOUBLE-ENTRY. 

G.  ROBINS,  JuN. 


100 


DAY-BOOK SET 


1] 


Hartford,  January  \st,  1838. 


Inventory  of  my  effects  and  debts  on  com- 
mencing business. 

1  have  Cash, 

"     Merchandise, .     . 

Belknap  &  Hamersly,  owe  me  on  account,  . 

I  have  due  me  on  notes,  as  per  Bill-Book,  . 


■1st., 


I  owe  as  follows,  viz  : 
Sundry  persons  on  notes,  per  Bill-Book, 
Hampshire  Manufacturing  Co., .     .     . 


2nd.,- 


Sold  Spalding  &  Storrs,  on  account.  Mer- 
chandise, per  Sales-Book,  page  1,       .     . 


•4th.,- 


Sold  D.  F.  Robinson  &  Co.,  for  Cash, 
Merchandise,  per  Sales-Book,  page  2, 

4th., 


Bought  of  Reed  &  Barber,  on  account, 
Merchandise,  per  Invoice-Book,  page  1, 

5th., 


Bought  of  S.  Spencer  &  Co.,  for  Cash, 
Merchandise,  per  Invoice-Book,  page  3, 

9th., 


Sold  P.  Dickinson,  Merchandise,  per  Sales- 
Book,  page  2,.  $2,500. 
Received  in  payment  his  note  at  60  days, 

10th., 


Bought  of  Jas.  S.  Folger,  Merchandise,  per 

Invoice-Book,  $800. 
I  gave  him,  in  payment,  my  note  at  20  days 


7,000:00 
5,00000 
1,50000 
6,000,00 


1,70000 
70000 


19,500 


2,400 


800 


2,000 


3,000 


5,000 


2,500 


00 


00 


00 


00 


00 


00 


00 


80000 


36,00000 


Note. — The  teacher  may  profitably  give  one  or  two  pages  of  the  Day-Book  entries,  to  his 
class,  for  a  lesson,  and,  when  they  come  together  to  recite,  let  him  read  over  these  entries,  and 
the  pupils  may  tell  him  how  they  are  Journalized,  and  why  they  are  thus  Journalized. 


JOURNAL SET    I. 


101 


Dr. 


Hartford,  January  \st,  1838. 


Cr.    1] 


Jan.  1 


Cash,     ..... 
Merchandise,  .    .    . 
Belknap  &  Hamersly, 
Bills  Receivable, 


Stock, 


Stock  is  debited  for  the  a- 
mount  of  tlie  Merchant's 
debts. 


Spalding  &.  Storrs,  .    . 

The  person  whom  you  trust 
is  debited. 


Cash, 

Cash  is  made  Dr.  when  you 
receive  cash. 


Nferchandise, 


Merchandise, 


Merchandise  is  made  Dr. 
when  you  purchase  it. 


Bills  Receivable, 


Bills  Receivable  are  made 
Dr.  when  they  are  received. 


Merchandise, 


7,00000 
5,00000 
1,50000 
6,00000 


2,400 


80000 


2,00000 


,000 


00 


5,000  00 


2,50000 


80000 


Stock, 


Stock   is    credited  for  the 
amount  of  property  invested 


Bills  Payable,      .    . 
Hampshire  Manu.  Co. 


36,00000 


Merchandise, 


Merchandise  is  made  Cr. 
when  you  sell  it. 


Merchandise, 


Merchandise    is    credited 
when  you  sell  it^ 


Reed  &  Barber, 


Cash, 

Cash   is   made  Cr.  when 
you  part  with  cash. 


Merchandise, 


BiUs  Payable, 


Bills  Payable  are  made  Cr, 
when  you  part  with  your 
note. 


19,500 


1,70000 


700 


2,000 


00 


3,000 


5,000 


2,500 


00 


00 


00 


00 


00 


00 


36,00o|o0 


Note.— The  sums  entered  in  the  money-column  of  the  Day-Book,  and  the  Dr.  and  Cr.  co- 
lumn of  the  Journal,  are  equal  to  each  other  when  added,  if  there  is  no  mis-entry.  See  the 
footings  of  each  page.    This  process  is  useftil  in  finding  mistakes. 


102 


DAY-BOOK SET    I. 


4.  ' 


2] 


Hartford,  January  llth,  1838. 


1  have  exchanged  notes  with  Chauncy  How- 
ard, for  our  mutual  accommodation,  each 
drawn  at  4  months,  for 


12th.,- 


The  Hartford  Bank  has  discounted  the  note 
received  from  Howard,  $3,000, 

I  hav£  received  in  Cash, 

Discount  off,     .......... 


14th.,- 


Shipped  by  the  Hero, ,  Kellogg,  master,  to 
Charles  Shepard,  New-Orleans,  500  bales 
Cotton  Check,  to  be  sold  on  my  account, 
and  returns,  .     .  • 

Passed  my  note  to  the  Hartford  Insurance 
Co.  for  premium  and  policy  on  the  same, 

Paid  charges  in  Cash, 


-15th. 


Sold  Burt  &  Townsend,  Merchandise,*  $800 
Received  in  payment,  Cash,     .... 
and  his  note  for  the  balance,  drawn  at  90 
days,  with  interest  added,      .... 


16th. 


Received  by  the  Ann,  from  London,  an  in 
voice  of  Silk  goods,  consigned  to  me  by 
J.  Burt,  to  be  sold  on  his  account,  per  S 
B.  page  4th.,  $7,000. 

Paid  Custom-House  duties  in  Cash,  .     . 

Charges  for  freight,  &c.  in  Cash,       .     . 

18th., 


Sold  Howe,  Mather,   &   Co.  a  quantity  of 

Burt's  goods,   per    Sales-Book,  page  4 

$5,000. 
Received  in  payment  their  note  at  60  daj'-s, 

which  the  Phcenix  Bank  has  discounted 

on  my  account. 

Cash  received, 

Discount  allowed, 


2,920 
80 


4,500 

50 
30 


300 
507 


900 
200 


4,95000 
50,00 


3,000 


00 


3,000 


00 


4,580 


00 


807 


1,100 


5,000 


17,487,50 


50 


00 


JOURNAL SET    I. 


KOS 


Dr. 


Hartford,  January  lU/«,  1838. 


Cr.    [2 


1838 
Jan.  11 


"  12 


"  18 


Bills  Receivable,      .    .    . 

Cash, 

Profit  and  Loss,  .... 

Profit  and  Loss,  or  Inter 
est,  is  made  Ur.  when  you  al 
low  discount. 


Sliipment  to  New-Orleans,    . 

When  you  ship  goods  to 
New- Orleans,  to  be  sold  on 
your  account,  Adventure  to 
New-Orleans  is  Dr.  to  the 
whole  expense. 


Cash,      .     .     . 
Bills  Receivable. 


J.  Burt's  Consignment, 


When  a  person  sends  goods 
to  me  to  be  sold  on  his  ac- 
count, his  Consignment  is 
made  Dr.  for  all  money  I  pay 
on  them. 


Cash,     .     .    .. 
Profit  and  Loss, 


,000 


2,920 
80 


4,580 


1,100 


4,95000 


50 


117,487 


00 


Bills  Payable, 


Bills  Receivable, 


This  amount  is  posted  in 
the  Ledger  at  the  Cr.  side  of 
Bills  Receivable. 


Merchandise, 
Bills  Payable. 
Cash,      .    . 


Merchandise, 
Interest, 


Interest  is  made  Cr,  when 
you  receive  interest  money 


Cash, 


This  amount  is  posted  in 
the  Ledger,  at  the  Cr.  side  of 
Cash. 


Burt's  Consignment, 


Burt's  Consignment  is 
made  Cr.  when  I  sell  any  of 
Burt's  goods. 


3,00000 


3,00000 


4,50000 
50  00 
SOiOO 


800 


1,100 


5,00000. 


17,487  50 


104 


DAY-BOOK SET    I. 


7f^ 


>iM- 


Aak4  ' 


3] 


Hartford,  January^  20?A,  1838. 


Bought  of  T.  Brainard,  for  Cash,  3  tons  Bea- 
ver-Meadow Coal,  ®  $9, 


-21st.,- 


Sold  Brown  &  Parsons,  Merchandise,  per 
Sales-Book,  page  4th., 


23nd., 

Bought  of  E.  W.  Bull,  for  Cash,  one  Build- 
ing-Lot on  Spring-street, 


•25th.,- 


Received  from  C.  Shepard,  an  Account-Sales 
of  Merchandise,  shipped  to  him  per  the 
Hero,  on  Jan.  14th., 

T^et  proceeds,  


26th.,- 


Sold  John  Olmsted  &  Co.,  the  remainder  of 

Burt's  goods,  for  $4,000, 
Received  in  payment  their  note,  -Q)  60  days, 

for 

Balance  in  Cash, .     .     . 

26th., 


Sold  D.  W.  Clark,  for  Cash,  O  3  per  cent, 
premium,  a  Draft  at  sight  on  Charles 
Shepard,  New-Orleans,  for 

Premium  received  on  the  same,      .     .     .     . 

27th., 


I  have  sent  for  collection,  to  J.  Humphrey, 
Esq.,  New-York,  a  Note  which  I  received 
from  J.'  Prince  of  that  place,  December 
8th., 


1  000 
3  000 


5,000 
150 


27 


1,500 


1,200 


5,000 


4,000 


5,15000 


00 


00 


00 


00 


00 


2,00000 
18,87700 


JOURNAL — SET    I. 


105 


Dr. 


Hartford,  January  20th,  1838. 


Cr.   [3 


Jan.  20 


25 


26 


Charges 

Charges  are  made  Dr.  when 
you  are  at  any  expense  under 
that  head. 


Brown  &  Parsons, 


Real  Estate, 

eal-Estate  is  made  Dr. 
whenever  you  purchase  any 
real-estate. 


Charles  Shepard,     .    .    .    . 

When  the  Consignee  advi- 
ses you  how  much  your  goods 
have  sold  for,  you  make  him 
Dr.  for  the  net  proceeds. 


Bills  Receivable, 
Cash,      ... 


26 


Cash, 


*•  27  James  Humphrey, 


27 


00| 


1,50000 


1,20000 


5,00000 


1,000 
3,000 


5,150 


2,000 


18,877  00 


Cash, 


Merchandise, 


Cash, 


Shipment  to  New-Orleans, 

When  you  hear  for  how 
much  your  shipment  has 
sold,  you  Cr.  that  account  for 
the  amount. 


Burt's  Consignment,    .    . 


Charles  Shepard, 
Profit  and  Loss,  . 


This  amount,  $150,  is  post- 
ed in  the  Ledger  at  the  Cr, 
side  of  Profit  and  Loss. 


Bills  Receivable, 


2700 


1,50000 


1,20C 


00 


5,00C 


4,000 


5,000 
150 


2,000  00 


18,877 


00 


106 


DAY-BOOK SET    I. 


4] 


Hartford,  January  2^th,  1838. 


I  have  this  day  made  up  an  Account-sales  of 
the  Goods  consigned  to  me  to  sell  by  J. 
Burt. 

The  whole  amount  of  sales  $9,000. 

My  Commission  on  the  same,^  2  per  cent 

Storage  and  Advertising, 

Net  proceeds  to  J.  Burt's  credit,  .... 


30th. 


Paid,  in  Cash,  my  note,  passed  to  Jas.  S 
Folger,  onthe  10th., ■ 


30th., 


James  Humphrey,  New- York,  has  received 
payment  on  the  note  sent  him  on  the  27th., 
and  has  remitted  me  a  check  on  the  Hart- 
ford Bank, 

Commission  out, 


31st.,- 


I  have  accepted  J.  Burt's  draft  on  me,  at  60 
days  sight,  $7,900,  being  the  net  amount 
of  his  sales, 


31st., 


Sold  at  6  months  credit,  to  W.  H.  Imlay,  my 
building-lot  on  Spring-street,  for     .     .     . 


31st., 


>/ 


I  have  received  Reed  &  Barber's  note,  pay- 
able f?)  60  days,  for 

3 1  St., 


Gave  Andrus,  Judd  &  Franklin,  an  order  on 
Brown  &  Parsons,  for  400  Harris'  Book 
Keeping,  ^90, 


180 


00 


1000 


7,710 


00 


1,99000 


10 


00 


7,900 


800 


00 


00 


2,000 


7,900 


1,400 


3,000 


360 


23,360 


00 


00 


00 


00 


00 
00 


JOURNAL SET    I. 


107 


Dr.  Hartford,  January  29th,  1838. 


Cr.    [4 


Jan. 29  J.  Burt'a  Consignment, 


This  amount  is  posted  in 
the  Ledger,  at  the  Dr.  side  of 
Burt's  Consignment. 

Bills  Payable, 

Cash,      

Charges 

James  Burt, 

This  amount  is  posted,  in 
the  Ledger,  at  the  Dr.  side  of 
Burt's  account. 

Wm.  H.  Imlay, 


"31 


"31 


Bills  Receivable, 


Andrus,  Judd  &  Franklin, 


7,90000 


800 


7,90000 


1,400 


3,000 


360  00 


23,36000 


Commission,  . 
Profit,and  Loss, 
James  Burt     . 


James  Humphrey, 


Bills  Payable, 


Real-Estate, 


Reed  &  Barber, 

This  amount  is  posted  in 
the  Ledger,  at  the  Cr.  side  of 
Reed  &  Barber's  account. 


Brown  &  Parsons, 


180 

IC 

7,71  C 


2,0UC 


00 


7,900 


1,40C 


3,000 


00 


36000 


23,360 


108 


DAY-BOOK SET    I. 


5] 


Hartford,  January  "ilstj  1838. 


r 


Sold  Reed  &  Barber,  Merchandise,  as  per 
Sales-Book,  page  5, 


-31st., 


I  have  paid  my  Clerk,  John  Brown,  his  sa 
lary  in  Cash,   taking  his  receipt  for   the 


Memorandum. 

Merchandise  unsold,  per  Inventory,  taken 
Jan.  31st.,  1838,  amounts  to  $1,000. 


2,000 


30000 


2,300 


00 


00 


JOURNAL SET    I. 


109 


Dr. 


Hartforp,  January  ^\st,  1838. 


Cr.   [5 


1838 
Jan.  31 


Reed  &  Barber, 


Charges, 


2,000 


30000 


2,300 


00 


Merchandise, 


Cash, 


2,00000 


30000 


2,30000 


K 


TO  OPEN  AND  CLOSE  A  SET  OF  BOOKS 


1st.  Construct  the  books  on  which  the  original  entries  are 
made. 

2nd.  From  the  books  of  original  entry,  make  your  Journal ; 
and  in  case  your  Journal  is  arranged  like  Journal  Set  I.,  add  the 
Dr.  and  Cr.  columns,  as  in  that  book. 

3rd.  Open  an  account  on  your  Ledger  with  the  name  of  every 
person  and  thing  which  appears  on  the  Journal. 

4th.  Post  each  sum  from  your  Journal,  (as  in  Set  L)  or  from 
your  Journal  and  Cash-Book  (as  in  Set  IIL)  to  your  Ledger. 

5th.  Compare  the  sums  on  Journal  with  those  transferred  to 
the  Ledger,  to  see  that  they  are  correct. 

6th.  Take  the  Trial-Balance  according  to  direction  on  page 
119. 

7th.  Transfer  the  amount  of  Private-Account,  (as  in  Set  IL)  or 
the  Partners- Accounts  (as  in  Set  III.)  to  the  Dr.  side  of  the  Stock- 
Account. 

8th.  Take  the  Profit  and  Loss-sheet,  according  to  direction 
on  pages  121,  the  Dr.  column  of  which  must  show  the  losses  and 
the  Cr.  side  the  gains  on  the  business. 

9th.  Take  the  Balance-sheet,  per  direction  on  page  1 24,  the 
Dr.  side  of  which  must  show  your  effects,  and  the  Cr.  side  your 
liabilities. 

10.  Equihbrate  the  accounts  in  the  Ledger,  per  direction  on 
page  128. 

11.  Bring  down  the  balance^  as  in  Set  IIL,  or  make  a  new 
Ledger,  (see  page  38.) 

The  foregoing  directions  may  aid  some  who  understand  the  above  steps,  without  knowing  the 
order  in  which  they  come. 


LEDGER, 

Set  I. 
DOUBLE-ENTRY. 

G.   ROBINS,   JuN. 


ALPHABET. 


Andrus,  Judd  &  Franklin,       .  6 

B. 
Belknap  &  Hamersly,   .     .     .4 

Bills  Receivable,       ....  3 

Bills  Payable, 3 

Brown  &  Parsons,     ....  5 

Burt,  James, 6 

C. 

Cash, 3 

Charges, 2 

Commission, 2 

Consignment,  Burt's,      ...  4 

H. 

Hampshire  Manufacturing  Co.,  4 

Humphrey,  James,     ....  5 


I. 

Imlay,  Wm.  H 6 

Interest, 1 

M. 

Merchandise, 1 

P. 

Profit  and  Loss, 2 

R. 

Real-Estate, 1 

Reed  &  Barber,    .....  5 

S. 

Shepard,  Charles,     ....  5 

Shipment  to  New-Orleans, .     .  2 

Spalding  &  Storrs,    ....  4 

Stock, 1 


The  Merchant  has  a  separate  book,  called  an  Alphabet,  for  entering 
the  name  of  each  account  which  he  opens  on  his  Ledger.  One  or  more 
pages  are  devoted  to  the  names  which  begin  with  the  letter  A  ,  one  or 
more  for  those  which  begin  with  B,  &c. 

With  the  name  and  page  of  each  account  on  this  book,  the  Book- 
keeper, after  Journalizing,  may  page-mark  each  item  on  the  Journal, 
so  that  in  posting  he  may  turn  from  the  Journal  to  the  account  in  the 
Ledger,  without  looking  to  the  Alphabet  to  find  the  page. 

Where  a  large  business  is  done  at  home  and  abroad,  the  trader  may 
find  it  to  his  advantage  to  have  several  Ledgers  ;  as  one  for  the  city, 
one  for  the  western,  and  one  for  the  southern  trade. 


LEDGER SET    I. 


or 


113 


Dr, 


Stock. 


Cr. 


1838 
Jan.    1 
"   31 


To  Sundries, 
"  Balance, 


2,400 
18,900 

21,300 


Jan.    1 
"   31 


Feb, 


By  Sundries,     .    . 
"  Profit  and  Loss, 


By  Balance, 


19,500 
1,800 

21,300 


00 
50 

50 
18,900  50 


The  Dr.  column  of  this  account  shows  how  much  the  Merchant  owes,  and  the  Cr.  column 
how  much  property  the  Merchant  has  invested  in  liis  business.  The  balance  of  the  Dr.  and 
Cr.  column  is  his  Net  Property. 


Dr. 


Merchandise. 


Cr. 


Jan. 


To  Stock,     .    . 
"  Reed  «fc  Barber, 
"  Cash,  ... 
"  Bills  Payable, 
"  Profit  and  Loss 


To  Balance, 


, 

5,000 

00 

Jan.  2 

1 

3,000 

00 

"  4 

1 

5,000 

00 

"  9 

1 

800 

00 

"  14 

1,300 

00 

"  15 
"  21 
"  31 

15,100 

00 

1,000 

00 

By  Spalding  &  Storrs, 

"  Cash, 

"  Bills  Receivable,  . 
"  Ship't.  to  Orleans, 
"  Sundries,  .  .  . 
"  Brown  &  Parsons, 
"  Reed  &  Barber,  . 
"  Balance,  .    . 


2,000 
2,500 
4,500 
800 
1,500 
2,000 
1,000 


15,100 


Feb. 

The  Dr.  side  of  this  account  shows  how  much  the  Merchandise  has  cost,  and  the  Cr.  side 
how  much  it  has  sold  for.    The  difference  of  Dr.  and  Cr.  is  the  gain  or  loss, 


Dr. 


Real-Estate. 


Cr. 


Jan.  23 

"   31 


To  Cash,  .... 
"  Profit  and  Loss, 


1,200 
200 

1.400 


Jan.  31 


By  Wm.  H.  Imlay,    . 


1,400 


1,400 


00 


The  Dr.  side  of  this  account  shows  how  much  Real-Estate  has  cost,  and  the  Cr.  side  how 
much  it  has  sold  for.    The  difference  between  Dr.  and  Cr.  is  the  gain  or  loss. 


Dr. 


Interest. 


Cr. 


Jan.  31  To  Profit  and  Loss, 


7  50    Jan.  15  By  Sundries,     ...    2  7  50 


The  Dr.  side  of  this  account  shows  how  much  has  been  paid  out,  and  the  Cr.  side  how  much 
has  been  received  for  interest.  The  difference  of  the  two  sides  is  transferred  to  the  Profit  and 
Loss-account.  I 


15 


K* 


114 


LEDOER SET    I. 


Dr. 


Shipment  to  New-Orleans. 


Cr. 


Jan.  14 
'   31 


To  Sundries,     .    . 
"  Profit  and  Loss, 


4,580  00 
45:0  00 


5,000 1 00 


Jan.  25 


By  Charles  Shepard, 


5,000 
5,000 


The  Dr.  side  of  this  account  shows  the  whole  expense  incurred  in  sending  goods  to  New-Or- 
leans on  your  own  risk,  and  the  Cr.  side  how  much  you  have  realized  on  the  sales.  Tlie  dif- 
ference between  the  Dr,  and  Cr.  side,  when  tlie  goods  have  been  sold,  goes  to  the  Profit  and 
Loss-Account.    When  no  sale  has  been  made,  the  difference  goes  to  the  Balancc-Sheet. 


Dr. 


Commission. 


Cr. 


i&Q.  31  To  Profit  and  Loss,    .     2  180  00     Jan.  29  By  Burt's  Consignm't.     4         180  00 


The  Dr.  side  of  this  account  shows  how  much  has  been  paid  for  Commission,  and  the  Cr. 
side  how  mUch  has  been  i-eceived  for  Commission.  The  difference  between  Dr.  and  Cr.  go?s  to 
Profit  and  Loss. 


Dr. 


Profit  and  Loss. 


Cr. 


1838 

Jan.  12 

"    18 

"   31 


To  Bills  Receivable,  . 
"  Burt's  Consignm't. 
"  Charges,  .  .  . 
"  Stock,      .    .    .    . 


2! 
2 
1 

80  00 

50  00 

337  00 

1,800  50 

2,267  50 

Jan. 26 

"  29 
"  31 

(1  <( 

By  Cash, 

"'  Burt's  Consignm't. 
"  Real  Estate,  .  . 
"  Interest,  .  .  .  . 
"  Ship't.  to  Orleans, 
"  Commission,  .  . 
"  Merchandise,    .    . 


150  00 

10  00 

200 1 00 

7!50 

420.00 

180  00 

1,300  00 

2,267  50 


The  Dr.  side  of  this  account  shows  how  much  loss  has  been  sustained  on  the  business,  and 
the  (Jr.  side  shows  how  much  has  been  gained  on  the  business.  The  difference  between  the 
Dr.  and  Cr.  goes  to  Stock,  being  the  net  gain  or  loss  on  the  business. 


Dr. 


Charges. 


Cr. 


1838    I 
Jan.  20  To  Cash, 

J.  Humphrey, 
31 


Jan.  31 


By  Profit  and  Loss, 


337 


337 1 00 


The  Dr.  side  of  this  account  shows  how  much  has  been  expended  under  the  head  of  charges, 
and  the  Cr.  side  how  much  has  been  received  under  that  head.  The  balance  of  the  Dr.  and  Cr. 
is  transferred  to  Profit  and  Loss. 


LEDGER SET    1. 


115 


Dr. 


Cash. 


Cr. 


1838 
Jan.  1 
"  4 
"  12 
"  15 
»    18 


To  Stock,  .  .  .  . 
"  Merchandise,  .  . 
"  Bills  Receivable,  . 
"  Sundries,  .  .  . 
"  Burt's  Consignm't. 

"  Sundries,      .    .    . 
"  J.  Humphrey,   .    . 


1 

7,000 

00 

Jan.  5 

1 

2,000  00 

"  14 

2 

2,920  loo 

"  16 

2 

300 

00 

'«  20 

2 

4,950 

00 

"  23 

3 

3,000 

00 

"  30 

3 

5,150  00| 

"  31 

4 

1,990 

OOj 

27,310 

00 

18,853 

00 

5ho\ 

vs  the  re 

ceij 

)ts,  and  th 

By  Merchandise,  .  . 
"  Ship't.  to  Orleans, 
"  Burt's  Consignm't. 
"  Charges,  .  . 
"  Keal-Estate, 
"  Bills  Payable, 
"  Charges, 
"Balance,  .    . 


5,000 
30 
1,100 
27 
1,200 
800 
300 


18,853  00 


27,310 


To  Balance, 
The  Dr.  side  of  this  account  shows  the  receipts,  and  the  Cr.  side  the  payments  of  cash.  The 
difference  between  the  Dr.  and  Cr.  column,  shows  the  amount  of  Cash  in  hand,  and  is  transfer- 
red 10  the  Balance-sheet.  The  Cr.  side  of  the  Ca.sh- Account  can  never  be  the  largest,  for  no 
more  money  can  be  spent  than  has  been  received. 


Dr. 


Bills  Receivable. 


Cr. 


1838  1 

Jan. 

1 

9 

« 

11 

(( 

15 

" 

20 

" 

31 

Feb. 

1 

To  Stock,      .     . 
"  Merchandise, 
"  Bills  Payable, 
"  Sundries, 
"  Burt's  Consignm't. 
"  Reed  &  Barber, 

*  16,007  50 
To  Balance, 


1 

1 

6,000 

00 

Jan.  12 

1 

2,500 

00 

"  27 

1 

3,000 

00 

"  31 

2 

507 

50 

3 

1,000 

00 

4 

3,000 

00 

16,007 

50 

11,007 

50 

By  Sundries,  . 
"  J.  Humphrey, 
"  Balance,  ,    . 


*5,000  00 


3,000 
2,000 
11,007 


The  difference  between  the  Dr.  and  Cr.  side  of  Bills  Receivable,  goes  to  the  Balance-sheet. 
The  Cr.  side  of  Bills  Receivable  cannot  be  the  largest,  unless  there  has  been  a  mistake,  for  no 
more  notes  can  be  parted  with  than  have  been  received. 


Dr. 


Bills  Payable. 


Cr. 


1838 
Jail.  30 
"    31 


To  Cash,     . 
Balance, 


12,650 


13,450 


Jan.    1 

"    10 

"  11 

"    14 
"   31 


Feb.    1 


By  Stock, 

"  Merchandise,  .  . 
"  Bills  Receivable,  . 
"  Shipm't.  to  Orleans, 
"  J.  Burt 


By  Balance, 


1,700 

800 

3,000 

50 


7,900  00 


13,45'J 


12,650 


The  Dr.  column  of  this  account  shows  how  many  of  the  merchant's  notes  he  has  paid,  and 
the  Cr.  column  shows  what  notes  he  has  issued  ;  that  is,  given  to  others.  The  balance  of  the 
Dr.  and  Cr.  columns,  is  the  amount  the  merchant  still  owes  on  notes. 

The  Dr.  side  of  Bills  Payable  can  never  be  the  largest,  unless  there  is  a  mistake,  since  no 
more  notes  can  be  redeemed  than  have  been  issued. 


*  In  making  the  Trial-Balance,  the  Book-keeper  may  take  the  footings  of  the  Dr.  and  Cr.  co- 
lumns directly  to  the  Trial  Balance-sheet,  or  foot  on  the  folio,  in  pencil-mark,  as  above,  before 
transferring  the  amount  to  that  sheet.    The  above  method,  perhaps,  has  the  preference. 


116 


LEDGER SET 


Dr. 


Burt's  Consignment. 


Cr. 


1838    j 
Jan.  16  To  Cash,  . 
29    *'  Sundries, 


1,100 
7,900 


9.000 


Jan.  18 
Jan.  26 


By  Sundries, 
"  Sundries, 


5.000 '00 
4.000  00 


9,000  00 


This  account  shows,  on  the  Dr.  side  how  much  expense  has  been  incurred  on  the  goods 
which  are  consigned  to  you,  to  sell  for  Burt ;  and  the  Cr.  side  how  much  those  goods  have  sold 
for.  The  difference  between  the  Dr.  and  Cr.  columns  is  transferred  to  Burl's  personal-account. 


Dr.        Hampshire  Manufacturing  Company.         Cr. 


Jan.  31 


To  Balance, 


700 


Jan.    1 
Feb.   1 


By  Stock, 
By  Balance, 


This  is  treated  like  a  person^s  account. 


Dr. 


Belknap  &  Hamersly. 


Cr. 


1838 
Jan.     1 


Feb.    ] 


To  Stock,      . 
"  To  Balance, 


1,500 


1,500 


Jan.  31 


By  Balance, 


1,500 


The  Dr.  side  of  this  account  shows  how  much  Belknap  &  Hamersly  owe  the  owner  of  the 
Books,  and  the  Cr.  side  how  much  the  owner  of  the  Books  owes  them.  The  same  is  true  of  all 
Fer^ons'-Accounts  ;  consequently,  no  remarks  will  be  made  on  the  following. 


Dr. 


Spalding  &  Storrs. 


Cr. 


1838 
Jan.    2 


Feb.    1 


To  Merchandise, 
To  Balance,  .    . 


800 


Jan.  31 


By  Balance,  . 


800 


LEDGER SET   X. 


117 


Dr. 


Reed  &  Barber. 


Cr. 


1838 
Jan.  31 


To  Merchandise, 
"  Balance, 


al 

2,000 

00 

Jan.  4 

1 

4,000 

00 

"31 

1 

6,000 

00 

1 

Feb.  1 

By  Merchandise,    . 
"  Bills  Receivable, 


By  Balance, 


4 

1 

3,000 
3,000 

6,000 

_4,000 

Dr. 


Brown  &  Parsons. 


Cr. 


1838 
Jan   21 


Feb.    1 


To  Merchandise, 


To  Balance,  . 


1,500 


2,500  00 

TTho  M 


Jan.  31 


By  Andrus,  Judd,  &> 
Franklin,   .    .    .    . 


360 
1,140 


1,500 


Dr. 


Charles  Shepard. 


Cr. 


Jan.  25lTo  Shipm'ttoOrleans,     ^      5,000  00   Jan.  26  By  Cash 


.     3  i     5,000  00 


Dr. 


James  Humphrey. 


Cr. 


Jan.  27 


To  Bills  Receivable, 


2,000  00 


Jan.  30 


By  Sundries, 


2,000 


\ 


118 


LEDGER SET    I. 


Dr. 


James  Burt. 


Cr. 


1838 
Jan.  31 


To  Bills  Payable, 
To  Balance,  .    . 


7,900 

7,900 

i90 


Jan.  29 
"    31 


By  Burt's  Consignm't. 
"  Balance,  .    .    ,    . 


7,710 
190 


,900 


00 


Dr. 


W.  H.  Imlay. 


Cr. 


Jan.  30 
Feb.    1 


To  Real-Estate, 
To  Balance, 


1.400 
1,400 


Jan.  31 


By  Balance, 


,400  00 


Dr. 


Andrus,  Judd  &c  Franklin. 


Cr. 


Jan.  31 
Feb.    ] 


To  Brown  &  Parsons, 
To  Balance,     .      .    . 


360 


360 


Jan.  31 


By  Balance, 


00 


TRIAL-BALANCE. 


119 


Dr. 


Trial-Balance. 


Cr. 


Stock,  .    .    . 
Cash,   .    .    . 
BillsReccivable, 
Bills  Payabie, 
Merchandise, 
Real-Estate,  . 
Interest,    .     . 
Charges,  .     . 
Ship't.  to  New-Orleans 
Commission,      .    .    , 
Profit  and  Loss,     . 
Hampshire  Manu.  Co 
Belknap  &  Hamersly 
Spalding  &  Storrs,     , 
Reed  «fc  Barber,      . 
Brown  &  Parsons, 
J.  Burt,    .... 
Wm.  H.  Imlay, 
Andrus,  Judd  & 
Franklin,   ... 


2,400 

27,310 

16,007 

80(» 


13,800!00 
1,200  00 

33700 
4,58000 

13000 

1,500  00 
800;00 
2,00000 
1,500,00 
7,900  00 
1,400;00 


82,024  [50 


Inner. 


18,853 
11,007 


337 


1,500 
800 

1,140 

190 

1,400 

360 


35,567  50 


Inner. 
17,100 


12,650 
300 
200 


420 

180 

30 

700 


4,000 


19,500 

8,457 

5.000  00 
13, 
14,100 

1,400 


5,00000 
18000 
16000 
70000 


6,000 

360 

7,710 


35,587  50     82,02450 


Note.— On  the  right  and  left  hand  outer  columns  will  be  found  the  footings  of  the  Dr,  and 
Cr.  side  of  each  account  in  the  Ledger.  On  the  right  and  left  hand  inner  columns  will  be  | 
found  the  difference  between  the  footing  of  each  account  in  the  Ledger.  £i^Aer  process  will 
prove  whether  the  items  have  been  correctly  posted  to  the  Ledger. 


QUESTIONS    ON   A   TRIAL-BALANCE. 

What  is  the  design  of  the  Trial-Balance? 

It  is  taken  to  ascertain  whether  the  amounts  on  the  Journal 
have  been  correctly  posted  on  the  Ledger.  You  know  according 
to  the  principles  of  equilibrium,  that  the  amount  of  every  transac- 
tion in  trade  has  two  or  more  distinct  entries  in  the  Ledger  ;  that 
is,  there  must  be  as  many  dollars  and  cents  posted  on  the  Dr. 
side  of  the  Ledger  as  there  are  on  the  Cr.  side. 

For  example ;  if  you  bay  of  John  Olmsted  &  Co.,  for  cash, 
merchandise  to  the  value  of  $500,  you  post  $500  at  the  Dr.  col- 
umn of  the  Merchandise-account,  and  also  $500  at  the  Cr.  column 
of  the  Cash- Account. 

Again,  if  you  buy  of  Hills  &  Bolter,  merchandise,  amounting 
to  $600,  one  half  for  cash  and  the  other  half  on  account,  you  would 
post  $600,  at  the  Dr.  side  of  Merchandise ;  and  $300  at  the  Cr. 
of  Cash,  and  $300  at  the  Cr.  of  Hills  &  Bolter's  account,  in  the 
Ledger.  Thus,  you  perceive  in  either  case,  you  have  an  equal 
amount  on  each  side  of  the  Ledger.  Hence,  after  a  month's  or 
year's  posting,  if  you  add  the  Dr.  side  of  each  account  in  the  Ledger 
(in  pencil-marks)  and  the  Cr.  side  of  each  account,  the  sum  of 
the  Dr.  entries  will  be  equal  to  the  sum  of  the  Cr.  entries,  if  the 
Books  have  been  correctly  posted. 


120  /  TRIAL-BALANCE. 

I  now  comprehend  entirely  the  design  and  process  of  finding 
these  amounts,  but  what  shall  I  do  with  them  when  obtained  ? 
I  You  will  take  a  sheet  of  paper,  ruled  with  double  money-co- 
'lumns  and  write  on  the  left  hand  of  it  the  name  of  each  account 
which  is  opened  on  the  Ledger  and  then  you  will  place  the  foot- 
ing of  each  account  against  its  name  on  this  sheet,  the  sum  of  the 
Drs.  in  the  Dr.  column,  and  the  sum  of  the  Crs.  in  the  Cr.  column 
of  this  sheet. 

Suppose  the  Dr.  and  Cr.  columns  of  the  Trial-Balance  sheet 
do  not  foot  up  alike  ? 

The  error  of  course  must  be  ferreted  out.  It  may  be  in  the 
adding  on  the  Ledger,  or  it  may  be  that  you  have  taken  wrong 
amounts  from  the  Journal.  The  mistake  in  any  case,  should  be 
Ifound,  if  it  be  no  more  than  one  cent. 

I  The  balance  should  be  taken  once  in  the  week  or  month,  de- 
fending upon  the  extent  of  the  business.  At  the  close  of  each 
week  or  month,  the  footing  may  be  placed  at  the  side  of  the  money 
column,  in  pencil-mark  and  remain  there.  These  footings  may 
be  entered  on  the  Trial-Balance  sheet  for  the  next  month,  or  left, 
at  the  option  of  the  Book-keeper.  For  instance,  you  take  the 
Trial-Balance  for  January  and  carry  the  footing  to  the  side  (in 
pencil-marks,)  of  the  money-column  of  each  account.  At  the  close 
of  February,  you  may  include  merely  the  transactions  of  February, 
or  the  transactions  of  January,  and  February  also. 

The  better  way  is,  however,  to  include  only  the  amounts  that 
have  been  posted  since  the  last  Trial-Balance  was  taken,  till  the 
books  are  to  be  balanced,  when  the  whole  should  be  included. 
Many  are  in  the  practice  of  copying  these  balances  into  a  book 
made  expressly  for  that  purpose. 


PROFIT    AND    LOSS-SHEET. 


121 


Dr. 


Profit  and  Loss-Sheet. 


Cr. 


1838 
Jan   31 


To  Charges, 
"  Stock, 


337 

1,800 


Jan   31 


By  Real-Estate, 
"  Interest,  .    . 
"  Ship't.  to  Orleans 
"  Commission,     . 
"  Profit  and  Loss, 
"  Merchandise,    . 


7 
420 


2,137 


QUERIES   ON 


A   PROFIT 
SHEET. 


AND   LOSS 


Having  ascertained  by  my  Trial-Balance  that  the  footings  of 
the  two  sides  of  the  Ledger  are  equal,  how  shall  I  now  proceed  ? 

Ans.  I  suppose  that  you  have  already  taken  account  of  Stock, 
that  is,  you  have  fixed  some  definite  value  (which  value  should 
be  no  more  or  less  than  the  property  can  be  sold  for)  on  the  mer- 
chandise under  its  various  heads,  as  Cotton,  Flour,  Sugar ;  also, 
Ships,  Real-Estate,  Bank,  and  other  Stocks  (if  such  accounts  be 
opened  in  your  Ledger)  and  make  a  memorandum  of  such  valua- 
tions on  the  Day-Book- 

For  example ;  if  you  have  at  the  balancing  of  your  Books,  Mer- 
chandise unsold,  valued  at  $3,000;  Real-Estate  at  $4,000  ;  Cot- 
ton at  $2,000;  Merchandise  in  Company  $6,000 ;  and  a  Ship  at 
$14,000,  you  will  place  on  the  Cr.  side  of  Merchandise  $.3,000,  Cr. 
side  of  Real-Estate  $4,000,  Cr.  side  of  Cotton  $2,000,  Merchan- 
dise in  Company  (if  you  own  half  of  it)  $3,000,  &c.,  writing  on  the 
line  with  each  amount  thus  carried  in  "  By  Balance"  In  a  small 
business,  however,  you  may  have  but  one  of  the  afore-mentioned 
accounts,  and  that  Merchandise ;  for  most  of  those  items  might 
come  under  that  general  head. 

Why  is  it  necessary  to  carry  in  these  Balances,  in  order  to  find 
the  gain  or  loss  ? 

You  know  that  the  Dr.  side  of  the  Merchandise-account  shows 
how  much  you  have  paid  for  merchandise  purchased,  and  the  Cr. 
16  L 


\2%  PROFIT    AND    LOSS-SHEET. 

side  of  the  same  account  how  much  you  have  received  for  sales 
of  Merchandise  ;  and  consequently  if  you  purchase  $4,000  v^rorth, 
and  sell  $2,000,  the  Dr.  side  of  the  account  would  be  $?,000  the 
largest,  which  would  indicate  a  loss  of  $2,000,  that  would  not  be 
true. 

But  if  you  value  what  you  have  unsold,  at  a  price  for  which  you 
could  sell  it,  say,  $2,500,  and  carry  the  same  to  the  Cr.  side  of  the 
Merchandise-Account,  the  difference  in  the  footings,  $500,  would 
be  a  gain. 

These  Balances  being  carried  to  the  Cr.  of  their  respective  ac- 
counts, how  shall  I  proceed  ? 

Take  a  sheet  of  paper  ruled  like  that  for  the  Trial-Balance,  and 
write  at  the  head  of  it,  "  Profit  and  Loss-sheet."  Then  add  the  two 
sides  of  the  general  Merchandise- Account,  and  if  the  Dr.  side  be 
the  largest,  the  difference  is  a  loss  and  you  will  carry  it  to  the  Dr, 
side  of  the  Profit  and  Loss-sheet.  But  if  the  Cr.  side  be  the  lar- 
gest, the  difference  is  again  and  you  will  place  it  on  the  Cr.  side 
of  the  Profit  and  Loss-sheet.  Proceed  in  the  same  manner  with 
the  Ships,  Charges,  Cotton,  Real-Estate,  Insurance,  Interest, 
Profit  and  Loss,  Commission,  Bank,  and  other  Stocks,  Flour,  Ad- 
ventures or  Shipments,  and  Merchandise  Co.  accounts. 

I  have  obtained  the  difference  of  all  the  above  accounts  and 
added  up  the  two  sides  of  the  Profit  and  Loss-sheet ;  what  is  the 
next  step  ? 

Take  the  difference  between  the  two  columns  which,  being  the 
net  gain  or  loss  on  your  whole  business,  you  will  carry  to  the 
Stock- Account.  If  the  Dr.  side  be  the  largest  you  will  carry  the 
difference  to  the  Dr.  side  of  the  Stock- Account  because  it  is  a  loss; 
but  if  the  Cr.  side  be  the  largest,  carry  the  difference  (in  pencil- 
marks)  which  is  a  gain,  to  the  Cr.  side  of  the  Stock-Account,  and 
add  it  to  the  amount  already  there.  You  now  subtract  the  amount 
(if  any)  on  the  Dr.  of  the  Stock- Account,  from  the  amount  on  the 
Cr.  side  of  the  same  account ;  and  this  difference  will  show  you 
your  net  property,  which  of  course  must  be  equal  to  the  difference 
between  the  two  sides  of  the  Balance-sheet,  when  this  sheet  shall 
have  been  made  out. 

Is  there  any  thing  further  to  be  done  with  the  Profit  and  Loss- 
sheet  ^ 


PROFIT    AND    LOSS-^HEET.  123 

Not  till  you  have  taken  the  Balance-Sheet  and  ascertained  that 
you  have  all  the  items  correct ;  for,  if  there  be  a  mistake,  it  should 
he  corrected  on  this  sheet  rather  than  on  the  book.  The  Profit  and 
Loss-sheet,  after  proved  to  be  correct,  maybe  transferred,  verbatim, 
to  the  Profit  and  Loss-account  in  the  Ledger. 


124 


BALANCE-SHEET. 


Dr. 


Balance-Sheet. 


Cr. 


1838 
Jan.  31 


Merchandise,     .    . 

Cash, 

Bills  Receivable,  . 
Belknap  &  Hamersly 
Spalding  <fe  Storrs, 
Brown  &  Parsons, 
J.  Burt,  .... 
Wm.  H.  Inilay,  . 
Andrus,  Judd  He  Franklin. 


1,000 
18,853 
11,007 
1,50000 

800 
1,140  00 
19000 


1,400 
360 

36,250 


Bills  Payable,  .  .  . 
Hampshire  Manu.  Co. 
Reed  &  Barber,  .  . 
Stock, 


12,65000 

70000 

4,C0O'0O 

18,90050 


36,250 


DIRECTIONS 

TO  MAKE  A    BALANCE-SHEET. 


Having  completed  the  Profit  and  Loss-sheet,  and  carried  the 
difference  between  the  Dr.  and  Cr.  columns  to  the  Stock- Ac- 
count, what  is  the  next  step  ? 

Ans.  You  will  make  the  Balance-sheet;  that  is,  write  down 
in  detail,  all  the  items  of  property  which  you  possess,  which  may 
be  merchandise,  cash,  notes,  debts,  real-estate,  ships,  &:c.,  and 
also  your  liabilities,  which  may  be  notes  and  personal  debts, 
which  you  owe. 

What  is  the  process  of  ascertaining  that  fact? 

Ans.  You  will  take  a  sheet  of  paper  ruled  like  the  Profit  and 
Loss-sheet,  Cr.  at  the  right,  and  Dr.  at  the  left-hand  side,  and, 

1st.  Add  the  Dr.  and  Cr.  columns  of  the  Stock- Account,  and 
place  the  difference  between  the  two,  if  the  Cr.  side  be  the  lar- 
gest, on  the  Cr.  column  of  the  Balance-sheet,  and,  if  the  Dr.  side 
be  the  largest,  carry  the  difference  to  the  Dr.  side  of  the 
Balance-sheet 

2nd.  Add  the  Dr.  and  Cr.  columns  of  Cash,  and  place  the 
difference  of  the  two  on  the  Dr.  column  of  the  Balance-sheet. 

3rd.  Add  the  Dr.  and  Cr.  columns  of  Bills  Receivable  and 
place  the  difference  on  the  Dr.  column  of  the  Balance-sheet. 


BALANCE-SHEET.  125 

4th.  Add  the  Dr.  and  Cr.  columns  of  Bills  Payable,  and  place 
the  difference  of  the  two  on  the  Cr.  column  of  the  Balance-sheet. 

5th.  Add  the  Dr.  and  Cr.  columns  of  each  Person's  Account, 
and  when  the  Dr.  column  is  the  largest,  carry  the  difference  be- 
tween the  two,  to  the  D7\  column  of  the  Balance-sheet;  but  if 
the  Cr.  column  be  the  largest,  carry  the  difference  of  the  two  to 
the  C7\  column  of  the  Balance-sheet. 

What  do  these  balances  show  or  mean? 

The  balance,  that  is,  the  difference  between  the  Dr.  aifid  Cr. 
columns  of  Stock,  shows  you  your  net  property. 

The  balance  of  Cash,  shows  how  much  cash  you  have  re- 
ceived more  than  you  have  paid  away,  and  consequently  how 
much  you  have  on  hand. 

The  balance  of  Bills  Receivable  shows  the  value  of  the  notes 
which  you  hold  unpaid  against  other  individuals. 

The  balance  of  Bills  Payable  is  the  value  of  the  unpaid  notes 
which  other  individuals  hold  against  you. 

The  balance  of  a  Person's  Account,  when  the  Dr.  column  is 
the  largest,  is  what  that  person  owes  you ;  if  the  Cr.  column  be 
the  largest,  you  owe  that  person  the  balance. 

Have  I  nothing  to  do  with  the  balances  of  Charges,  Interest, 
Commission,  Insurance,  Profit  and  Loss,  and  Expense-Accounts, 
in  making  the  Balance-sheet? 

You  will  pass  over  those  accounts,  as  they  show  you  merely 
gains  and  losses,  under  their  respective  heads,  and  not  any  thing 
which  can  be  called  property.  Indeed,  all  the  items  which  are 
posted  at  those  Accounts,  might  be  posted  at  the  Profit  and  Loss- 
Account  only^  but,  as  many  individuals  wish  to  know  how  much 
they  pay  and  receive  under  those  heads  respectively,  they  open 
separate  accounts. 

Have  I  any  thing  to  do  with  the  Merchandise-Account  ? 

Pass  over  it,  if  your  merchandise  has  all  been  sold ;  but  if  a 
part  of  it  remains  unsold,  the  value  of  it  will  already  have  been 
transferred  from  the  Memorandum  to  the  Cr.  side  of  Merchan- 
dise-Account "jBy  Balance;''''  this  balance  you  will  transfer  to 
the  Dr.  side  of  the  Balance-sheet. 

If,  of  the  merchandise  which  has  been  bought,  none  has  been 
sold,  the  value  of  the  whole,  which  should  go  to  make  up  the  ag- 


126  BALANCE-SHEET. 

gregate  of  property,  in  the  merchant's  possession,  may  be  carried 
to  the  Dr.  column  of  the  Balance-sheet. 

Precisely  the  same  course  must  be  pursued  with  the  accounts  of 
Cotton,  Flour,  Real-Estate,  Bank  and  other  Stocks,  Ships,  and 
Adventures  abroad,  if  such  accounts  are  opened  in  your  Ledger. 
What  is  to  be  done  with  the  Private-Account,  if  I  keep  one? 
The  footing  of  that  account  was  carried  to  the  Dr.  side  of 
Stock,  and  the  same  amount  is  to  be  brought  back  to  the  Cr.  of 
Private- Account. 

Having  now  all  your  effects,  that  is,  all  your  property,  on  the 
Dr.,  and  all  your  liabilities,  that  is,  all  the  debts  you  owe,  together 
with  the  balance  of  Stock,  on  the  Cr.  side  of  Balance-sheet,  add 
the  Dr.  and  Cr.  column,  and  the  one  should  equal  the  other. 

To  what  should  the  difference  between  the  Dr.  and  Cr.  column 
of  the  Balance-sheet  be  equal,  not  including  the  balance  of  Stock 
which  already  appears  in  the  Cr.  column  ? 

It  should  be  equal  to  the  difference  between  the  Dr.  and  Cr. 
column  of  the  Stock- Account. 

Do  you  mean  that  the  net  gain,  (the  Balance  of  Profit  and 
Loss,)  should  be  added  to  the  amount  carried  into  business,  be- 
fore you  make  the  foregoing  comparison? 

That  would  be  necessary,  inasmuch  as  you  wish  to  find  the 
value  of  your  property  at  the  present  time. 

If  the  difference  between  the  two  sides  of  Stock  is  equal  to  the 
difference  between  the  two  sides  of  the  Balance-sheet,  what  does 
it  prove  ? 

It  proves  that  you  actually  show  as  much  property  after  your 
debts  shall  have  been  paid,  as  your  Stock-Account  represents  you 
to  be  worth.  You  will  remember  that  the  Stock-x4.ccount  merely 
shows'  you  the  value  of  your  property,  without  showing  in  lohat  it 
consists ;  while  the  Balance-sheet  shows  of  what  it  is  composed. 
I  suppose  that  the  Balance-sheet  affords  data  for  opening  ac- 
counts in  a  new  Ledger  ? 

Yes.  You  may  take  the  Balance-sheet  and  open  on  the  Ledger 
an  Account  with  each  person  and  thing,  whose  name  appears  on 
that  sheet,  and  place  the  same  amount  which  is  found  on  the  Bal- 
ance-sheet, to  its  respective  account  in  the  new  Ledger,  "By,  or 
To  Balance,"  from  Led.  A.  or  B.  When  there  is  room  on  the 
old  Ledger  to  post  another  year's  transactions,  it  may  be  used 


BALANCE-SHEET.  127 

again,  but  if  it  is  necessary  that  you  open  any  account  on  a  new 
Ledger,  it  is  better  that  they  all  appear  there,  as  such  an  arrange- 
ment saves  much  trouble  in  referring  from  one  Ledger  to  another. 

Should  this  Balance-sheet  be  copied  to  the  Ledger  ? 

It  is  sometimes  copied,  and  always  should  be,  as  that  book 
would  be  imperfect  without  it. 

How  often  are  merchant's  books  usually  balanced  ? 

Once  in  the  year,  and  usually  'in  January,  or  when  business  is 
duU. 

Is  the  Trial-Balance  of  any  use  in  making  out  the  Balance- 
sheet  ? 

The  footing  of  the  Dr.  and  Cr.  side  of  each  account  in  the 
Ledger,  will  of  course  appear  in  the  Trial-Balance,  which  may 
in  most  cases  be  made  use  of,  instead  of  adding  those  accounts 
again. 


,  DIRECTIONS 

TO   EQUILIBRATE   LEDGER-ACCOUNTS. 

You  have  now  taken  the  difference  between  the  Dr.  and  Cr. 
column  of  each  account  in  the  Ledger,  where  any  differences 
exist,  and  placed  that  difference  either  on  the  Profit  and  Loss-she6t, 
or  on  the  Balance-sheet,  according  to  the  rules  laid  down  for 
those  transfers ;  how  will  you  next  proceed  ? 

I  will  place  such  an  amount  on  the  smallest  side  of  each  ac- 
count as  will  make  the  Dr.  and  Cr.  column  equal,  when  footed. 

Are  you  obliged  to  foot  these  accounts  again  in  order  to  find 
the  differences  of  the  Dr.  and  Cr.  of  them  ? 

No.  For  the  differences  are  now  on  the  Balance,  and  Profit 
and  Loss-sheets.  I  will  therefore  first  examine  the  Profit  and 
Loss-sheet,  and  if  I  find  the  difference  between  the  Dr.  and  Cr. 
column  of  Merchandise  on  the  Cr.  side  of  the  Profit  and  Loss- 
sheets,  I  will  transfer  that  sum  to  the  Dr.  column  of  Merchandise, 
saying,  "To  Profit  and  Loss."  But  if  that  difference  be  on  the 
Dr.  column  of  the  Profit  and  Loss-sheet,  I  will  transfer  it  to  the 
Cr.  colugin  of  Merchandise,  saying,  "  By  Profit  and  Loss." 

I  will  proceed  in  the  same  manner,  as  with  Merchandise, 
Charges,  Insurance,  Interest,  Expense,  Commission,  Cotton, 
Ships,  Adventures,  Real-Estate,  Bank  and  other  Stocks,  and  Mer- 
chandise Company- Accounts,  if  I  have  the  difference  between 
the  Dr.  and  Cr.  side  on  the  Profit  and  Loss-sheet. 

How  will  you  equilibrate  Profit  and  Loss  ? 

I  will  place  the  difference  on  the  smaller  side,  saying,  "  To,  or 
By  Stock,"  as  the  case  may  be. 

I  will  next  take  the  Balance-sheet,  and  if  I  find  in  the  Cr. 
column  of  it,  the  difference  between  the  Dr.  and  Cr.  side  of  the 
Stock-Account,  I  will  transfer  that  sum  to  the  Dr.  side  of 
Stock,  saying,  "To  Balance."  But  if  the  difference  between 
the  Dr.  and  Cr   side  of  that  Account  be  on  the  Dr.  side  of  the 


DIRECTIONS  TO  EQUILIBRATE  LEDGER-ACCOUNTS.  129 

Balance-sheet,  I  will  transfer  the  same  to  the  Cr.  side  of  Stock, 
saying,  "By  Balance." 

i  I  will  proceed  in  the  same  manner  with  all  Personal  Accounts, 
and  Adventures,  where  there  have  been  no  sales. 
What  further  will  you  do  with  those  accounts  ? 
The  Dr.  and  Cr.  column  of  each  account  will  now  foot  alike, 
so  I  will  strike  a  single  line  under  each  column,  and  after  adding 
them  up,  I  will  strike  a  double  line,  signifying  that  the  xA^ccounts 
are  equilibrated. 


17 


REMARKS  ON  BOOKS,  SET  II 


Some  accountants,  especially  those  who  have  been  in  the  prac- 
tice of  Journalizing  their  Books  daily,  (as  Set  1st,)  seriously  ob- 
ject to  the  method  (as  Set  3rd.)  This  plan,  say  they,  not  only 
compels  the  Book-keeper  to  perform,  in  a  short  time,  the  whole 
labor  of  Journalizing  and  Posting  the  month's  transactions,  which 
he  might  have  done  at  his  leisure ;  but  also  creates  the  necessity 
of  examining  the  Day-Book,  in  order  to  make  up  the  bill  of  an  in- 
dividual, who  wishes  to  settle  the  same  before  the  monthly  Jour- 
nalizing and  Posting  shall  have  been  completed.  This  is  an  ob- 
jection, and  the  only  valid  one  that  has  been  offered  to  the  above 
method.  Then  there  is  an  objection  also  to  the  lumbersome  and 
tedious  process  of  Journalizing  and  Posting  daily,  (that  is,  each 
transaction  by  itself,)  as  that  occupies  more  room  on  the  Journal 
end  much  more  on  the  Ledger,  than  the  monthly  plan.  To  obvi- 
ate these  evils,  I  have  projected  and  written  out  Books,  Set  XL, 
which  are  Journalized  once  in  a  week.  This  plan,  a  medium 
between  the  daily  and  monthly  method,  is  new,  and  is  recommend- 
ed by  the  author  to  the  merchant,  particularly,  as  affording  the 
greatest  possible  correctness  in  keeping  accounts.  The  retailer 
usually  makes  a  general  balance  of  his  cash  on  Saturday  night, 
and  this  seems  the  most  appropriate  time  for  bringing  up  the 
Books.  Let  the  Book-keeper  write  on  the  Journal,  the  title, 
"  Sundries  Dr.  To  Merchandise,"  and  under  this  title  write  the 
name  of  each  person  who  has  bought  Merchandise  on  account 
during  the  past  week,  affixing  the  amount  purchased  on  the  same 
line.  If  any  individual  has  made  several  purchases  in  the  week, 
the  amounts  should  be  entered  on  the  Journal  successively,  on 
the  inner  colunan,  and  the  footing  entered  long,  so  instead  of  en- 


REMARKS    ON    BOOKS,    SET   II.  131^ 

tering  each  purchase  separately  to  the  Ledger,  you  enter  all  his 
purchases  for  the  week  to  his  account  in  one  sum. 

Having  the  amounts  of  all  the  sales  how  placed  in  the  outer 
column,  they  are  to  be  footed,  and  the  sum  of  them  to  be  entered 
at  the  Cr.  side  of  Merchandise-account,  "  By  Sundries,"  and  each 
person  made  Dr.  "  To  Merchandise,"  for  the  amount  of  his  pur- 
chases during  the  past  week. 

The  Book-keeper  next  writes  the  title,  "  Merchandise  Dr.  to 
Sundries,"  and  places  under  it  each  purchase,  as  above,  in  order 
that  the  sum  of  the  purchases  may  go  to  the  Dr.  side  of  Merchan- 
dise-account "  To  Sundries." 

Under  the  above  titles  may  be  Journalized  all  merchandise 
bought  and  sold,  except  what  may  have  been  bought  and  sold  for 
cash  or  notes,  and  that  must  be  arranged  according  to  the  rules 
given  for  Journalizing  in  this  Set. 

The  cash  transactions  of  Set  2nd.  are  entered  on  the  Day-Book, 
so  that  the  C ash-Book  may  be  dispensed  with,  or  the  cash  trans- 
actions may  be  entered  on  the  Cash-Book  and  not  on  the  Day- 
Book.  As  a  general  thing,  the  Cash-Book  should  be  used ;  as 
it  brings  an  important  part  of  the  business  records  by  itself,  and 
lessens  the  number  of  entries  in  the  Day-Book.  The  form  of  a 
Cash-Book,  suitable  for  a  retail  business,  is  given  with  this  Set. 
The  Principal  Cash-Book  is  rendered  less  voluminous  by  keeping 
a  Petty  Cash-Book,  and  in  a  retail  business  especially,  it  is  recom- 
mended. The  amount  of  cash  in  hand  in  the  morning  is  entered 
on  the  Dr.  side,  and  every  sum  received  through  the  day,  except 
what  is  received  on  sales  of  merchandise.  The  amount  received 
during  the  day  for  merchandise  is  counted  at  night,  and  also  en- 
tered on  the  Dr.  side  of  the  Cash-Book.  All  sums  paid  out  dur- 
ing the  day  should  be  entered  on  the  Cr.  side,  when  the  differ- 
ence of  the  two  sides  will  be  the  amount  of  cash  on  hand.  This 
balance  is  carried  to  the  Dr.  side  in  the  morning,  and  the  cash  bal- 
anced as  on  the  previous  day,  till  the  last  day  of  the  week,  when 
the  balance  should  be  transferred  to  the  Dr.  side  of  the  Principal 
Cash-Book.  If  any  cash  has  been  received  or  paid  on  accountt 
the  entries  should  be  made  accordingly,  on  the  Principal  Cash- 
Book, 


RULES  FOR  JOURNALIZING 


The  Journal  (Set  2,)  contains  a  weekly  abstract  of  all  the  trans- 
actions recorded  in  the  Cash-Book,  Day-Book,  Bill-Book,  In- 
voice-Book, &c.,  arranged  under  distinct  heads  :  as. 

Under  the  head,  "  Cash  Dr.  To  Sundries,"  enter  on  the  line 
with  each  siun  of  cash  received  through  the  week,  the  name  of 
the  person  or  thing  on  whose  account  it  was  received. 

Under  the  head,  "  Sundries  Dr.  To  Cash,"  enter  on  the  line 
with  each  sum  paid  out  through  the  week,  the  name  of  the  per- 
son or  thing  on  whose  account  it  was  paid.    (See  Journal,  Set  2.) 

Under  the  head  "  Merchandise  Dr.  to  Sundries,"  enter  on  the 
same  line  with  each  sum  which  Merchandise  has  cost  through 
the  week,  the  name  of  the  person  who  trusted  you,  or  of  the  thing 
that  was  given  as  an  equivalent  for  the  Merchandise,  (excepting 
Cash.) 

Under  the  head,  "  Sundries  Dr.  To  Merchandise,"  enter  on  the 
same  line  with  each  sum  that  Merchandise  has  been  sold  for 
through  the  week,  the  name  of  the  person  whom  you  trusted,  or 
the  thing  which  was  received  as  an  equivalent  for  the  Merchan- 
dise, (excepting  Cash.) 

Under  the  head,  "  Bills  Receivable  Dr.  To  Sundries,"  enter  on 
the  same  line  with  the  amount  of  each  Bill  you  receive  through 
the  week,  the  name  of  the  person  who  gives  it  to  you  on  account^ 
or  the  thing  that  was  given  as  an  equivalent,  (excepting  Cash  and 
Merchandise.) 

Under  the  head,  "  Sundries  Dr.  To  Bills  Receivable,"  enter  on 
the  same  line  with  the  amount  of  each  Bill  disposed  of  through  the 


RULES    FOR    JOURNALIZING.  133 

week,  the  name  of  the  person  to  whom  it  was  given  on  account^ 
or  of  the  thing  received  as  an  equivalent,  (excepting  Cash  and 
Merchandise.) 

Under  the  head,  "  Sundries  Dr.  to  Bills  Payable,"  enter  on  the 
same  line  with  the  amount  of  each  note  you  issue  through  the 
week,  the  name  of  the  person  to  whom  you  gave  it,  or  the  thing 
that  was  received  as  an  equivalent,  (excepting  those  having  been 
Journalized  under  any  of  the  above  heads.) 

Under  the  head,  "  Bills  Payable  Dr.  To  Sundries,"  enter  on 
the  same  line  with  the  amount  of  each  note  you  redeem  through 
the  week,  the  name  of  the  thing  that  you  give  as  an  equivalent, 
(excepting  those  having  been  Journalized  under  any  of  the  forego- 
ing heads.) 

Under  the  head,  "  Insurance  Dr.  To  Sundries,"  enter  on  the 
same  line  with  each  sum  that  Insurance  has  cost,  the  name  of  the 
person  who  trusted  you  w^ith  it,  or  the  thing  given  as  an  equiva 
lent. 

Average  or  total  losses. 
For  all  losses  sustained  on  business,  enter 

Profit  and  Loss  Dr. 
And  for  all  gains  on  business ,  enter 

Profit  and  Loss  Cr. 

Shipping  Goods  to  order,  enter 

The  person  (for  whose  account  shipped)  Dr.  to  Sundries 
To  Mdse.,    ....     for  value  of  Goods. 
"   Charges,      ...     for  petty  expenses. 
"  Insurance,    .     .     .     if  you  get  them  insured. 

When  you  incur  expenses  on  Goods  consigned  to  you, 
The  Consigner's  sales.  Dr.  to  the  expense. 

When  the  sales  are  closed,  enter 

The  Consigner's  sales  Dr.  "  To  Sundries. 

To  Charges,     ....   for  sums  paid. 

"  Interest,      ....    on  money  advanced. 

"  Commission,  .     .     .    for  selling  the  same. 

"  the  Consigner,     .     .     for  the  balance. 
M 


CASH  AND  DAY-BOOK. 

Set  II. 
D  0  U  B  L  E  -  E  i\  T  R  Y. 

P.   R.  POTTER. 


136 


CASH-BOOK. SET  II. 


Dr.                      Hartford,  MarcA  U^,  1837. 

1837 
Mar.  1 

«     6 

((     (( 

Mar.   8 
"     9 
"  11 
"  13 

Mar.  15 

((   (( 

t(   (( 
"  20 

■ 

Mar.  22 

((    ii 

«  23 

"  25 

"  27 

To  Stock, 

"  Merchandise, 

"       «        

• 

6,000  00 

1,800  00 

610  00 

8,410 

9,601 

11,232 

13,104 

00 
00 
00 

00 

To  Balance,  from  last  week,    .     .     . 

"  Merchandise, 

"  Charles  Abernethy,  on  account,  . 
"  Merchandise, 

8,410  00 

41  00 

100  00 

1,050  00 

To  Balance,  from  last  week,  .  .  . 
"  George  Corning,  on  account, 

"  Stock, 

"  Merchandise, 

9,536  00 
196  00 

1,000  00 
500  00 

To  Balance,  from  last  week,  .  .  . 
"  John  Olmsted  &  Co.,  on  account, 

"  Merchandise, 

"  Phoenix  Bank-Stock,     .... 

"  Merchandise,       ...... 

"  Phcenix  Bank-Stock,     .     .     .     . 

«  Merchandise. 

532  00 

62  00 

60  00 

5,100  00 

850  00 

5,300  00 

1,200  00 

All  the  cash  received  is  entered  on  the  Dr.  page,  and  all  the  cash  paid  out  is  entered  on  the  Cr. 

Tliis  Cash-Book  has  the  same  cash  entries  as  the  Day-Book.    Such  transactions  need  not  be 
entered  on  the  Day-Book,  when  a  Cash-Book  is  kept. 

CASH-BOOK. SET  II. 


137 


Hartford,  March  1st,  1837. 


Cr. 


1837 
Mar.  6 


Mar.  12 
"  13 


Mar.  9 

"   19 
"  20 


Mar.  25 

"  27 

((      u 


By  *Balance,  to  next  week, 


By  Private  account,        .... 
"  Profit  and  Loss,  store-rent,  &c., 
"  Balance  to  next  week,        .     . 


50  00 

15  00 

9,536  00 


By  Brown  &  Brothers'  consignment, 
"  Bills  Payable,  No.  1,  .  .  .  . 
"  Phoenix  Bank-Stock,  .  .  .  . 
"  Balance,  to  next  week,       .     .     . 


100 

00 

500  00 

10,100  00 

532 

00 

By  Bills  Payable,  No.  2,    .     . 
"  Profit  and  Loss,  rent,  &c., 
"  Private  account,  .     .     . 
"  Balance,  to  next  week, 


3,000  00 
100  00 
100  00 

9,904  00 


8,41000 


9,601 


11,232 


13,104 


00 


00 


00 


No  transfer  of  the  Balance  is  made  from  the  Cash-Booh  to  the  Journal ;  this  is  merely 
of,  in  showing  how  much  cash  you  should  find  in  your  drawer  at  the  close  of  the  week, 


18 


138 


DAY-BOOK. SET  II. 


Hartford,  March  1st,  1837. 


Inventory  of  my  Effects,  commencing  business  ; 

Cash, 6,000  00 

Merchandise, 6,000  00 


Tuesday,  2nd., 

Sold  John  Olmsted  and  Co., 

8  yds.  Broadcloth,       .     .     .     ®  4  00      .     .     32  00 
30    "  Carpeting,  ...     -8)  1  00      .     .     30  00 


((  (( 


Bought  of  Howe,  Mather,  &  Co., 

1 1  bales  Cotton-Check,  as  per  Invoice, 

Wednesday,  3rd., 


Sold  George  Coming, 

18  yds.  superior  Broadcloth,    €fi  10  00     .     .     180  00 
Sundry  Goods, 16  00 


Thursday,  Ath., 


Accepted  a  Bill  drawn  by  Howe,  Mather,  &  Co., 
at  16  days  sight, 


<(  ii 


Sold  Charles  Sheldon, 

On  his  note,  No.  1, 60  days.  Merchandise,  amounting  to, 

— Friday,  5th.,— 


Received  from  Stewart  &  Co.,  per  order,  1  case 
Silks,  as  per  Invoice,         


((        li 


Sold  Charles  Abemethy, 

20  yds.  Carpeting,         .     .     '8)  10  00  per  yard. 


■Saturday,  6th., 


Sold  I.  M.  Hall,  for  cash, 

1 1  pieces  Carpeting,       .     .     fg  50  00     .     .     550  00 
1  piece  Silk, 60  00 


12,000 


62 


500 


196 


500 


400 


3,000 


200 


610 


00 


00 


00 


00 


00 


00 


00 


00 


00 


DAY-BOOK. SET  II. 


139 


Hartford,  Saturday^  March  6th,  1837. 


Cash  sales  this  week,  amount  to     . 
—— Monday,  8th.,- 


Sold  John  King, 

8  yds.  Calico, 0  ,50.     .     .     4  00 

Sundry  Goods,        6  00 


((  (( 


Bought  of  John  W.  Stowell, 
600  palm  leaf  Hats, 


.     n  12  1-2  cts.     .     . 


Tuesday,  9th., — 


Sold  N.  Johnson,  for  cash, 

1  piece  Irish  Linen,        25  00 

Sundry  Goods, .     16  00 


((  II 


Accepted  a  Bill  drawn  by  Stewart  &  Co.,  at  14 
days  sight 


Wednesday,  10th., - 


Bought  of  John  Olmsted  &  Co., 
Merchandise,  as  per  Invoice, 


1,800 


75 


00 


1000 


00 


Received  of  Charles  Abernethy, 
Cash,  on  account,     .     .     .     . 


Thursday,  llth. 
^.bernethy, 

Friday,  I2th.,- 


Sold  E.  W.  Bull, 

Merchandise,  amounting  to 


((  iC 


Paid  cash  for  private  expenses, 
Saturday,  I3th.,- 


Paid  cash  for  storage,  postage,  &c.. 


tc  t( 


Accepted  a  Bill  drawn  by  John  Olmsted  &  Co., 
at  30  days, 


41 


3,000 


100 


100 


30 


50 


15 


62 


00 


00 


00 


00 


00 


00 


00 


00 


140 


DAY-BOOK SET  II. 


Hartford,  Saturday,  March  13iA,  1837. 


Cash  sales,  this  week,  amount  to 
— — Monday,  I5tk. 


Received  from  George  Coming, 
Cash,  on  account,     .     .     .     . 


*  Received  in  cash,  a  Legacy  from  a  late  friend, 
Tuesday,  I6tk., 


Sold  H  King, 

On  his  note.  Merchandise,  amounting  to 


Sold  John  Olmsted  &  Co., 

Merchandise,  as  per  Sales-Book, 

Wednesday,  17  th.,- 


Sold  Charles  Sheldon, 
6  yds.  Silk  Velvet, 
12   "    Silk,     .     .     . 
10   "    Linen  Drilling, 


0)  3  00  .  .  18  00 
Q)  1  50  .  .  18  00 
ti)  3  00     .     .     30  00 


Sold  John  Brown, 

1  piece  Russia  Sheeting, 
10  yds.  Broadcloth, 


14  00 

@  8  00     .     .     80  00 


1,050 


196 


00 


00 


100000 


Thursday,  I8th.,- 


Bought  of  the  Conn.  Silk  Manufacturing  Company, 
100  lbs.  Sewing-Silk,     .     .     .     -S)  8  00    .     .     . 


-Friday,  I9th. 


Received  from  Brown  &  Brothers,  Boston,  4  bales  Broad- 
cloth to  be  sold  on  their  account.  Invoiced  at   1 ,100  00 
Paid  freight  and  charges  in  cash, 


100 


62 


00 


00 


66 


00 


94 


80000 


10000 


00 


*  When  property  is  given  or  received  without  a  supposed  equivalent,  (as  above,)  it  is  not  a 
gain  or  a  loss  on  one's  business,  therefore,  it  is  carried  to  the  Stock-Account,  and  not  to  the  Profit 
and  Loss. 


DAY-BOOK SET  II. 


141 


Hartford,  Friday ^  March  19^A,  1837. 


Sold  H.  B.  Beach, 
1  bale  Cotton-Check, 


-Saturday,  20th.,- 


Paid  my  bill,  No.  1,  in  cash, 


((  a 


Bought  of  George  Beach,  for  cash,  100  shares 
Phoenix  Bank-Stock,  $101  per  share,  .     .     . 


Monday,  22nd.,- 

Cash  sales,  this  week,  amount  to    . 


((  u 


Received  from  John  Olmsted  &  Co.,  cash,  on  accomit,  . 


Sold  A.  &  C.  Day,  &  Co., 

4  pieces  Broadcloth,  belonging  to  Brown  &  Brothers, 
per  Sales-Book, 


Sold  E.  B.  Hall,  for  cash, 
1  bale  Cotton-Check,    . 


Tuesday,  23rd., 

Sold  Henry  King,  for  cash, 

50  shares  Phoenix  Bank-Stock,  at  $102  per  share, 

Wednesday,  24th., 


Bought  of  Stewart  &,  Co., 
Goods,  Invoiced  at  .     . 


Thursday,  25th.,- 


Sold  P.  Dickinson,  for  cash. 
Merchandise,  amounting  to 


((  (( 


Paid  my  bill,  No.  2,  in  cash, 


6000 


50000 


10,10000 


50000 


62 


1,300 


60 


5,100 


1,000 


00 


00 


00 


00 


00 


85000 


3,00000 


142 


DAY-BOOK SET  II. 


Hartford,  Friday,  March  26thf  1837. 


Sold  E.  B.  Hall,  for  cash, 

60  shares  Phoenix  Bank-Stock,  ®  106  00,        .     . 


«  « 


Made  up  account-sales  of  Brown  &  Brothers'  Goods 
Total  sales,     .  ....     1,300  00 

Commission, 28  75 

Brown  &  Brothers' net  proceeds,    ....     1,171  25 


■Saturday,  27th., 


Paid  charges,  rent,  &c.,  in  cash, 


W  (( 


Sold  D.  Wadsworth, 

7  yards  Broadcloth,    .     .     .    0)  10  00 


((  (( 


Paid  Personal  expenses,  in  cash. 


t<  (( 


Cash  sales,  this  week,  amount  to 


I  Memorandum. 

Balance  of  Merchandise,  as  per  Inventory,  is  valued 

at 4,500  00 


5,30000 


1,200 


100 


00 


00 


70 


100 


00 


00 


1,20000 


JOURNAL. 

Set   II. 
DOUBLE-ENTRY. 

P.   R.   POTTER 


144 


JOURNAL SET  II. 


Hartford,  March  1st,  1837. 


1837 


1 

Mar.l 

2 

"     6 

2 

U          (( 

£ 

1 

2 

5 

"     2 

4 

«     3 

2 

«     4 

5 

«     5 

Cash,  Dr.  to  Sundries* 

Cash  received,  1st.  week. 

To  Stock,        6,000  00 

"  Merchandise, 1,800  00 

"  "  .......        610  00 


Sundries,  Dr.  to  Merchandise. 

Merchandise  sold,  1st.  week. 

John  Olmsted  &  Co.,      .... 

George  Corning,        

Bills  Receivable,       .     .     .     .     . 
Charles  Abemethy,        .... 


62  00 
196  00 
400  00 
200  00 


Merchandise,  Dr.  to  Sundries. 

Merchandise  purchased,  1st.  week. 

To  Stock, 6,000  00 

«  Howe,  Mather,  &  Co.,      ...        500  00 
«  Stewart,  &  Co., 3,000  00 


"  9 
"  11 
«  13 


"  12 
"  13 


Howe,  Mather,  &  Co.,  Dr.  to  Bills  Pat/able. 


second  week. 
Cash,  Dr.  to  Sundries. 

Cash  received,  2nd.  week. 

To  Merchandise, 41  00 

"  Charles  Abemethy,  on  account,  100  00 

"  Merchandise, 1,050  00 

Sundries,  Dr.  to  Cash. 

Cash  paid,  2nd.  week. 

Private-Account, 50  00 

Profit  and  Loss,  store-rent,  &c.,  .     .  15  00 


8,41000 


85800 


9,500 


500 


00 


00 


1,19100 


65 


00 


"  The  expression  Sundries,  is  an  abbreviation  of  Sundry- Accounts,  and  is  used  when  there 
are  two  or  more  Drs.  to  one  Cr.,  and  vice  versa.  So  the  expression  of  "  Sundries  Dr.  To  Sun- 
dries," is  sometimes  used  in  journalizing,  when  there  are  two  or  more  Drs.  and  two  or  more  Crs. 


JOURNAL SET  II. 

Hartford,  March,  8th,  1837. 
Sundries,  Dr.  to  Merchandise. 

Merchandise  sold,  2nd.  week. 

John  King-,      ........  10  00 

E.  W.  Bull, 30  00 

Merchandise,  Dr.  to  Sundries. 

Merchandise  purchased,  2nd.  week. 

To  John  W.  Stowell, 75  00 

"  John  Olmsted,  &  Co.,        ...        100  00 

Sundries,  Dr.  to  Bills  Payable. 

Bills  issued,  2nd.  week. 

Stewart,  &  Co., 3,000  00 

John  Olmsted,  &  Co.,    .     .     .     .     .  62  00 


145 


4 

Mar.  8 

4 

"  13 

£ 

1 

2 

5 

"     8 

5 

"   10 

1837 


"   15 

((    (( 

"  20 


9 
20 


"  16 

u      u 

"  17 

a     ti 

"  19 


THIRD  WEEK. 

Cash,  Dr.  to  Sundries. 

Cash  received,  3rd.  week. 

To  George  Coming,  on  account,       .        196  00 

"  Stock, 1,000  00 

"  Merchandise, 500  00 


Sundries,  Dr.  to  Cash. 

Cash  paid,  3rd.  week. 

Brown  &  Brothers'  consignment,      .        100  00 

Bills  Payable,  No.  1, 500  00 

Phoenix  Bank-Stock, 10,100  00 


Sundries,  Dr.  to  Merchandise. 

Merchandise  sold,  3rd.  week. 

Bills  Receivable, 

John  Olmsted,  &  Co.,    .... 

Charles  Sheldon, 

John  Brown, 

H.  B.  Beach,        


100  00 
62  00 
66  00 
94  00 
60  00 


40 


00 


175 


00 


3,062 


00 


1,696 


10,700 


382 


00 


00 


00 


19 


N 


146 


JOURNAL — -SET  II, 


Hartford,  March  ISth,  1837. 


1837 
Mr.  18 


"  22 

«  23 

"  25 

((    (( 

«  27 


«  25 

"  27 


22 


24 


"  26 


27 


Merchandise,  Dr.  to  Connecticut  Silk 
Manufacturing  Company,      .     . 


FOURTH  WEEK. 

Cash,  Dr.  to  Sundries. 

Cash  received,  4th.  week. 

To  John  Olmsted  &  Co.,  on  account, 
"  Merchandise,  .  .  . 
"  Phoenix  Bank-Stock,  . 
"  Merchandise,  .  .  . 
"  Phcsnix  Bank-Stock,  . 
"  Merchandise,       .     ,    . 


Sundries,  Dr.  to  Cash. 

Cash  paid,  4th.  week. 

Bills  Payable,  No.  2,     .     . 
Profit  and  Loss,  rent,  &c.y 
Private-Account,        .     .     . 


A.  &  C.  Day,  &  Co.,  Dr.  to  Brown 
Sf  Brothers'  Consignment,     . 


Merchandise,  Dr.  to  Stewart  <Sf  Co., 


Brown  &  Brothers' Consignment, 

Dr.  to  Sundries, 

To  Commission, 

"  Brown  &  Brothers',      .     .     .     . 


D.  WADswoRTHy  Dr.  to  Merchandise, 


6200 


60 

5,100 

850 

5,300 

1,200 


3,000 
100 
100 


28 


80000 


12,572 


3,200 


1,300 


1,C00 


1,200 


7000 


00 


00 


00 


00 


00 


It  is  cuatoBttary  in  ruling  the  Journal,  tomake  s:  double  money-column,  as  above. 


LEDGER, 

Set  il. 
DOUBLE-ENTRY. 

P.  R.  POTTER 


ALPHABET. 


Abemethy,  Charles 
Account,  Private 

B 
Bills  Payable 
Bills  Receivable,     . 
Bull,  E.  W.  .         . 

Brown  &  Brothers, 
Brown,  John 
Beach,  H.  B. 
Brown  &  Brothers'  Cons'gt. 

C 
Cash,    .... 
Coming,  George    . 
Commission, 

D 
Day,  A.  &  C.  &  Co.,     . 

H 
Howe,  Mather,  &  Co.,    . 


King,  John 


Merchandise, 


K 


M 


O 


Olmsted,  John  &  Co., 

P 

Profit  and  Loss, 


Stock,     .       .         .         .        , 

S  to  well,  John 

Stewart  &  Co., 

Stock,  Phoenix  Bank 

Silk  Manufacturing  Company, 

Sheldon,  Charles       .     . 


W 


Wadsworth  D. 


LEDGER SET    II, 


149 


1 

Dr.                                  Stock.*                                    Cr. 

1837 
Mar.  27 

To  Private-Account,   . 
'•  Balance,   .... 

I 

150 
13,549 

00 
75 

Mar.  1 

"  15 
"  27 

By  Cash,      .... 

"  Merchandise,    .    . 
«  Cash,       .... 
"  Profit  and  Loss,,  . 

1 
1 
2 

1 

6,000 

6,000 

1,000 

699 

00 
00 
00 

75 

75 

13,6U9 

13,699 

Dr.                           Profit  &  Loss.                            Cr. 

Mar.  13 
"    27 

To  Cash, 

"    Stocki    '.'.'.'. 

1 
3 

1 

15 

100 
699 

00 
00 
75 

Mar.  27 

By  Merchandise,    .    . 
"  PhoenixBank-Stock 
"  Commission,     .    . 

2 

1 
6 

486 

300 

28 

00 
00 
75 

75 

814 

75 

814 

Dr.                       Private- Ac  COUNT.                          Cr. 

Mar.  12 
"   27 

To  Cash,       .    .    .    . 

1 
2 

50 
100 

150 

00 
00 

00 

Mar.  27 

By  Stock,      .... 

1 

150 

00 

150 

Dr.                      Phcenix  Bank-Stock.                      Cr. 

Mar.  20 
"   27 

To  Cash,       .    .    .    . 
"  Profit  and  Loss,    . 

2 
1 

10,100 
300 

00 
00 

00 

Mar.  23 
"   25 

1 

5,100 
5,300 

00 
00 

3 

10,400 

10,400 

*  The  word  Stock  may  mean, 

1st.    The  merchandise  which  the  trader  has  on  his  hands. 

2nd.    The  money  invested  in  Insurance,  Canal,  Rail-Road,  Bank,  and  other  Stocks. 
3rd.    The  whole  property  invested  in  trade  ;  as  merchandise,  cash,  notes,  and  debts.    It  to 
taken  in  the  latter  sense,  when  we  speak  of  the  Stock-Account. 

„ ^— 

N* 


160 


LEDGER SET   II. 


Dr, 


Merchandise. 


Cr. 


1837 
Mar.  8 
"  14 
"  20 
"  24 
«   27 


To  Sundries,  .    . 

"  Con.  Silk  Man.  Co. 
"  Stewart  &  Co. 
"  Profit  and  Loss,    . 


1 

9,500 

00 

Mar.  6 

2 

175 

00 

«  2 

2 

800 

00 

"  9 

3 

1,000 

00 

"  13 

1 

486 

00 

"  20 

"  22 
"  25 

U    (( 

11,961 

00 

By  Cash,  .  . 
"  Sundries, 
"  Cash,  .    . 


Sundrieis, 


"  Sundries, 
"  Cash,     . 


"  D.  Wadsworth, 
"  Balance,  .    .   . 


2,410 

858 

41 

1,050 


40  00 
500  00 


60 

850 

1,200 

70 
4,500 


11,961 


Dr. 


Commission. 


Cr. 


Mar.  27  To  Profit  and  Loss,    .     1 


28  75   Mar,  26  By  B.  &  B's  Cons'gt. 


28  75 


Dr. 


Bills  Payable. 


Cr. 


Mar.  20 
"25 
"27 


To  Cash,  .    , 
"    Balance, 


5fl0 
3,000 


3,562 


Mar.  4 

«'     9 


By  IIowe,Mather  &  Co. 

"  Sundries,       .    .    . 


1 

500 

00 

2 

3,062 

00 

3,562 

00 

Dr. 


Bills  Receivable. 


Cr. 


Mar.  4. 
"   16 


To  Merchandise, 


500 


Mar.  27 


By  Balance, 


600 


Dr. 


Con.  Silk  Manufacturing  Co. 


Cr. 


Mar.  27  To  Balance, 


00   Mar.  18  By  Merchandise,    .    .     2         800  00 


LET>GER — SET   II. 


151 


3 

Dr.                                   Cash.                                     Cr. 

1837 
Mar.   1 
"    13 
"    20 
«    27 

To  Sundries,      ... 

"     "      !  •  .  . 
"     *'      !  !  !  ! 

1       8,410 

1  1,191 

2  1,696 

3  12,572 

100 
00 
00 
00 

00 

Mar.  12 
"  20 
"  25 
"  27 

By  Sundries,     .     .    , 
"  Balance 

1 
2 
3 

65 
10,700 
3,200 
9,VJ04 

23,869 

loo 

iOO 
00 
00 

00 

23,869 

Dr.                              John  Brown.                               Cr. 

Mar.  17 

To  Merchandise,    .    . 

2            94 

00 

Mar.  27 

By  Balance,       .    .    . 

94 

0 

Dr.                             H.  B.  Beach.                              Cr. 

Mar.  19 

To  Merchandise,    .    .     1 

I           fiO 

00 

Mar.  27 

By  Balance,  .... 

(H; 

00 

Dr.                      A.  &  C.  Day,  &  Co.,                      Cr. 

Mar.  22 

ToB.  &B.'8Con8'gt.     I 

1,300 

00 

Mar.  27 

By  Balance,   .    .    .    . 

1,300 

-. : 

00 

Dr.                          D.  Wadsworth.                             Cr. 

Mar.  27 

To  Merchandise,    .    .     : 

I            70 

m 

Mar.  27 

By  Balance,      .    .    . 

70 

00 

162 


LEDGER SET    II. 


4 

Dr.                         George  Corning.                          Cr. 

Mar.   3 

To  Merchandise,     .   . 

1 

196 

00 

Mar.  15 

By  Cash,       ....  2 

196 

00 

Dr.                               John  King.                               Cr. 

Mar.   8 

To  Merchandise.    .    . 

2 

10 

00 

Mar.  27 

By  Balance,       .    .    • 

10 

00 

Dr.                             E.  W.  Bull.                              Cr. 

Mar.  13 

To  Merchandise,    .    . 

2 

30 

^ 

Mar.  27 

By  Balance,       .    .    . 

___  30 

00 

Dr,                       Brown  &  Brothers.                       Cr. 

Mar.  27 

To  Balance,       .    .    . 

1,171 

25 

Mar.  26 

By  B.  &  B.'s  Cons't.       '. 

5       1,171 

25 

Dr.                         Charles  Sheldon.                          Cr. 

Mar.  17 

To  Merchandise,    .    . 

2 

66 

1 

00 

Mar.  27 

By  Balance,      •    .    . 

66 

00 

LEDGER — SET   II. 


153 


5 

Dr.                    HowE^  Mather,  &  Co.                     Cr. 

1837 
Mar.   4 

To  BUl8  Payable,    . 

1           500 

00 

Mar.  2 

By  Merchandise,    .    . 

500 

00 

Dr.                      Charles  Abernethy.                       Cr. 

Mar.  5 

To  Merchandise,    .    . 

1           200 

00 
00 

Mar.  11 
"    27 

By  Cash,       .    .    .     . 
By  Balance,      .    .    . 

100 
100 

200 

00 
00 

00 

200 

Dr.                           John  Stowell*                   ,         Cr. 

Mar.  27 

To  Balance,       .    .    . 

76 

00 

Mar.   8 

By  Merchandise,    . 

75 

00 

Dr.                      John  Olmsted  &  Co.                       Cr. 

Mar.   2 
"    13 
«    16 

To  Merchandise,    .    .     1 
"  Bills  Payable,  .     .     i 
"  Merchandise,    .         S 

62 
62 
62 

186 

00 
00 
00 

00 

Mar.  10 
"   22 
"    27 

By  Merchandise,    .     . 
"  Cash,       .... 
•'  Balance 

2 
3 

100 
62 
24 

186 

00 
00 
00 

00 

Dr.                           Stewart  &  Co.                           Cr. 

Mar.  9 

"    27 

To  Bills  Payable,  .    .     2 
"  Balance,  .... 

• 

3,000 
1,000 

4,000 

00 
00 

00 

Mar.  5 
"   24 

By  Merchandise,    .    . 
"  Merchandise,    .    . 

1 
3 

3,000 
1,000 

4,000 

60 
00 

00 

154 


LEDGER — SET    11, 


Dr. 


Brown  <fe  Brothers'  Consignment. 


Cr. 


1837 
Mar.  19 

'    26 


To  Cash, 
"  Sundries, 


100 
1,200 


Mar.  22  By  A.  &  C.  Day,  &  Co. 


Dr. 


TRIAL-BALANCE. 


Cr. 


Stock,      .     .     . 
Profit  and  Loss, 
Private  Account, 
Phcenix  Bank-Stock, 
Merchandise,     . 
Commission, 
Bills  Payable,    . 
Bills  Receivable 
Conn.  Silk  Manu.  Co 
Cash,       .     .     . 
John  Brown, 
H.  B.  Beach,     . 

A.  &  C.  Day,  &  Co 

D.  Wadsworth, 
John  King, 

E.  W.  Bull,       . 
Brown  &,  Brothers, 
Charles  Sheldon,   . 
Charles  Abernethy, 
John  W.  Stowell, 
John  Olmsted,  &  Co 
Stewart  &  Co. 

B.  &  B.'s  Cons'gt. 


115 

150 

10,100 

11,475 


3,50000 
500 

23,869 
94 
60 
1,300 
70 
10 
30 

.66 
200 

186 
3,000 
1,300 


56,025  00 


1837. 


BALANCE-SHEET. 


13,00000 


10,400 

7,461 

28 

3,562 

800 
13,965 


1,171 

100 

75 

162 

4,000 

1,30000 




25 

00 
00 
00 
00 


56,025  00 


Cash,  .'  .  .  . 
Merchandise.  .  . 
Bills  Receivable,  . 
Charles  Abernethy, 
John  Olmsted,  <fe  Co. 
J.  King,  .  .  , 
E.  W.  Bull,  . 
Charles  Sheldon 
J.  Brown,  .  . 
H.  B.  Beach,  . 
A.  &  C.  Day,  &  Co. 
D.  Wadsworth, 


9,904 

4,500 

500 

100 

24 


30 
66 
94 


1000 


6000 

1,30000 

70l00 


Bills  Payable,   .     . 
John  Stowell,    .     . 
Stewart  &,  Co. 
Silk  Manufac.  Co. 
Brown  &  Brothers, 
Stock,      .... 


16,658)00] 


62 

75 

1,000 

800 

1,171 

13,549 


00 
00 
00 
00 
25 
75 


16,65800 


REMARKS  ON  BOOKS,    SET  III. 

The  Third  Set  of  Books  is  a  record  of  a  Wholesale  Dry-Goods 
Business,  conducted  by  three  Partners,  for  four  months,  at  which 
time  the  Books  are  balanced,  the  Balance-Sheet  taken,  showing 
in  what  their  property  consists,  and  the  Private-Ledger  showing 
each  partner's  share  of  the  property. 

The  business  is  supposed  to  continue  in  the  same  hands  ;  ac- 
cordingly the  Books  or  Accounts  are  again  opened,  which  con- 
sists merely  in  bringing  down  the  Balance  of  each  account  to  its 
apposite  side. 

When  the  foho  becomes  so  much  filled,  as  to  be  insufficient  for 
another  year's  entries,  a  new  account  must  be  opened  on  another 
folio,  and  the  Balance  of  the  old  account  transferred  to  that,  "  By 
or  To  Balanced     See  Ledger  B,  Set  2,  Single-Entry. 

The  plan  of  Journalizing  monthly,  which  is  pursued  in  this  Set 
of  Books,  has  many  advantages  over  the  daily  method,  and  is  now 
adopted  in  many  respectable  mercantile  houses.  Instead  of  post- 
ing the  amount  of  each  purchase  of  Merchandise  separately,  the 
sum  of  all  the  purchases  through  the  month,  is  posted,  occupying, 
of  course,  but  one  line  in  the  Ledger.  This  lessens  the  liability 
to  mistake,  in  posting,  adding,  &c.,  besides  occupying  only  one 
line  in  the  Ledger,  while  the  other  method  would  take  one  for 
every  purchase  or  sale. 

On  the  debit  side  of  the  Cash-Book,  are  entered  all  sums  of 
Cash  carried  into  business,  or  which  are  afterward  received;  and 
on  the  credit  side  are  entered  all  sums  parted  with. 

In  buying  or  selling  goods  for  ready  money,  the  first,  or  origi- 
nal entry  containing  particulars,  is  made  on  some  of  the  subsidia- 
ry Books,  and  the  second,  or  Counter-Entry  at  the  same  time,  in 
the  Cash-Book. 

In  paying  money  on  importations,  as  Consignments  or  Adven- 
tures, the  first  entry  containing  particulars,  is  made  in  a  subsidi- 
ary Book,  and  then  entered  on  the  Cash-Book  hy  the  title  of  the 
account  on  which  the  sum  was  paid,  with  reference  to  the  page 
of  the  book  on  which  the  first  entry  was  made.  The  Cash-Book 
may  be  balanced  daily,  weekly,  or  monthly. 

The  Balances  at  the  close  of  each  month,  are  made  use  of  to 
regulate  the  Cash-Book,  consequently  nothing  is  done  with  them 
in  Journalizing. 


CO-PARTNERSHIP. 

Is  when  two  or  more  persons  unite  together  and  agree  to  par- 
ticipate in  the  Profit  and  Loss,  according  to  their  respective 
shares  in  the  joint  capital  in  trade.  Individuals  desirous  of  form- 
ing such  a  partnership  shall  make,  and  severally  sign  a  certificate 
which  shall  contain, 

1st.  The  name  of  the  firm  under  which  such  a  partnership 
shall  be  conducted. 

2nd.  The  general  nature  of  the  business  intended  to  be  trans- 
acted. 

3rd.  The  names  of  all  the  general  and  special  partners  inter- 
ested therein,  and  their  respective  places  of  residence. 

4th.  The  amount  of  capital  which  each  special  partner  shall 
have  contributed  to  the  common  stock. 

5th.  The  period  at  which  the  partnership  is  to  conamence,  and 
the  time  when  it  shall  terminate. 

This  Indenture,  made  between  Stedman  W.  Hanks,  Nicholas 
Harris,  and  Alfred  Watkinson,  witnesseth :  That  the  said  S.  W. 
Hanks,  N.  Harris,  and  A.  Watkinson,  have,  in  order  to  better 
improve  their  estates,  agreed  to  become  co-partners  and  joint- 
traders,  in  transacting  a  Wholesale  Dry-Goods  and  Grocery  Busi- 
ness, under  the  firm  of  Hanks,  Harris  &  Co.,  in  which  they 
invest  $20,000,  in  the  following  proportions,  viz  : 
S.  W.  Hanks,     ......     $8,000 

N.  Harris,       .......       7,000 

A.  Watkinson, 5,000 

20,000 

The  said  S.  W.  Hanks,  N.  Harris,  and  A.  Watkinson,  further 
agree,  that  each  partner  shall  share  in  the  gain  or  loss  arising 
from  their  business,  in  proportion  to  their  respective  amounts  in- 
vested in  the  joint  capital. 

Moreover,  That  this  co-partnership  shall  commence  on  the 
first  day  of  June,  in  the  year  1837,  and  continue  till  the  last  day 
of  September  of  the  same  year,  when  the  Balance-sheet  shall  be 
taken,  and  a  division  of  the  property  made,  as  above  stated. 

r  Stedman  W.  Hanks, 

Signed,  Hartford,  May  8th.,  1837,  by     ^  NiCHOLAS    HaRRIS, 

L  Alfred  Watkinson. 


CASH-BOOK. 


Set  III. 


DOUBLE-ENTRY 


HANKS,  HARRIS,   &    Co 


158 


CASH-BOOK SET  III. 


1     Dr. 


Hartford,  June  1st,  1837. 


1837 


June  1 
30 


July  ] 
6 
25 


Aug.  1 

"     2 
«  24 


Sep.  1 
4 
11 
14 
20 
26 


Receipts. 

To  Stock,      .     .     .    joint  capital,     . 
"  Merchandise,     .     sold  this  month. 


To  Balance,       .     .     from  last  month,    .     .     . 
Bills  Receivable,  No.  1,  Hudson  &  Putnam. 
Hartford  Bank,     per  order, 


To  Balance,       .     .     from  last  month,     .     . 
Bills  Receivable,   No.  4,  A.  Watkinson, 

Interest   on  Bill,  No.  4, 

Hartford  Bank,    .  per  order,    .     .     .     . 


To  Balance,       .     .     from  last  month,     . 
"  A.  &  C.  Day,  &  Co.,  on  account,  .     .     . 
"  Bills  Receivable,   No.  3,  John  Olmsted, 
«     "  "  "     5,  H.  Hudson,    . 

'•      "  «  "     2,  S.  Tudor,  .     . 

"  Ship  Europe,     .     our  third  gain,  .     .     . 


20,000 
1,000 


21,000 


00 


9,88000 


1,800 
200 


11,880 


7,940 

2,000 

4 

2,800 


12,744 


3,744 
4,000 
1,250 
8,000 
800 
700 


18,494  66 


00 


66 


This  Cash-Book  is  not  journalized,  but  posted  directly  to  the  Ledger.  The  amount  of  cash 
received  in  June  (all  the  receipts  of  cash  being  placed  on  the  Dr.  side  of  the  Cash-Book,)  is 
$20,000  on  joint  stock,  and  $1,000  for  sales  of  merchandise.  Hence,  I  place  $21,000  to  the 
Cash-Account  in  the  Ledger,  saying,  on  the  Dr.  side,  "To  Sundries,  $21,000."  I  then  place 
$20,000  to  the  Cr.  side  of  Stock,  "  By  Cash,"  and  $1,000  to  the  Cr.  side  of  Merchandise,  "  By 
Cash."  In  July,  I  make  Cash  Dr.  "  To  Sundries,"  $2,000,  and  make  Bills  Receivable  Cr.  $1,800 
and  Hartford  Bank  Cr.  $200.    So,  each  month. 

The  Balance  of  the  Cash-Book  is  equal  to  the  Balance  of  the  Cash- Account  in  the  Ledger,  after 
posting. 


CASH-BOOK SET  III. 


159 


Cr.                  '     Hartford,  June  8th,  1837.                                 2 

1837                                                                                    1 

Payments.                           , 

6 

Junes 

By  Hartford  Bank,     deposited  this  day,       .     . 

3,000 

00 

3 

"  12 

"  Charges,     .     .     advertising,  &c.,     .     .     . 

120 

00 

4 

"  23 

"  Ship  Europe,  .     our  third, 

8,000 

00 

5 

3 

"  30 
July  ] 

"  Balance,      .     .     to  next  month,    .... 

9,880 

00 

21,000 

00 

By  Charges,       .     .     store  fixtures,   .... 

240 

00 

9 

"   12 

"  A.  Watkinson,  .     personal  expenses,     .     . 

400 

00 

5 

"  22 

«  Bills  Payable,    .     No.  1,  W.  H.  Imlay,      . 

3,240 

00 

3 

"  30 

»  Charges,       .     .     Petty  Cash-Book,      .     . 

60 

00 

5 
3 

"  31 
Aug.l 

"  Balance    ...     to  next  month,       .     .     . 

7,940 

00 

11,880 

00 

By  Cotton,     ...     75  bales,  per  the  Swan, . 

4,000 

00 

5 

"     2 

"  Bills  Payable,   .     No.  3,  Custom-House,    . 

1,400 

00 

5 

"     4 

"      "         «      .     .       "    3  1-2,Collins&Sons, 

2,000 

00 

8 

"  26 

"  N.  Harris,    .     .     personal  expenses,     .     . 

400 

00 

5 

"  30 

"  Bills  Payable,   .     No.  2,  Hills  &  Bolter,    . 

1,200 

00 

5 
5 

"  31 
Sep.  1 

"  Balance, ...     to  next  month,       .     .     . 

3,744 

66 

12,744 

66 

By  Hartford  Bank,       deposited  this  day,     .     . 

4,000 

00 

8 

"     8 

"  S.  W.  Hanks,    .     personal  expenses,     .     . 

200 

00 

9 

"  13 

"  R.  Watkinson,  &;  Co.,  on  account,      .     .     . 

1,500 

00 

3 

"  23 

"  Charges,       .     .     rent,  &c., 

700 

00 

5 

"  30 

"  Balance,       .     .     to  next  month,       .     .     . 

12,094 

66 

18,494 

66 

In  June,  there  has  been  paid  $11,120,  in  cash,  (the  payments  always  being  entered  on  the 

Cr.  side  of  the  Cash-Book.)     On  the  8th.,  was  paid  the  Hartford  Bank,  $3,000 ;  on  the  12th.,  was 

paid  lor  Charges,  $  120  ;  on  the  23rd.,  was  paid  for  Ship  Europe,  $8,000.    Therefore,  I  will  place  on 

the  Cr.  side  of  the  Cash- Account,  $11,120,  "  By  Sundries,"  (or  Sundry- Accounts.)    Then,  I  will 

place  $3,000  to  the  Dr.  of  Hartford  Bank ;  $120  to  the  Dr.  of  Charges ;  $8,000  to  the  Dr.  of  Ship 

Europe,  saying  in  each  case,  "  To  Cash." 

The  wliole  payments  in  July,  were  $3,940,  which  I  will  post  to  the  Cr.  of  Cash,  and  debit 

Charges,  Watkinson,  and  Bills  Payable,  each  for  their  amount.    Thus  witlieach  month. 

Nothing  is  done  with  the  Balances  in  posting. 

DAYBOOK, 

Set  III. 
DOUBLE- ENTRY. 

HANKS,  HARRIS,   &   Co. 


162 


DAY-BOOK,  OR  BLOTTER SET  III. 


Hartford,  June  \st,  1837. 


1837 
June    ] 


Bought  of  A.  M.  Collins  &  Sons, 

4  pieces  super  Cloth,  at  $571  61  per  piece, 


Sold  Hudson  &;  Putnam^ 

Merchandise,  as  per  Sales-Book, 

Received  in  payment,  their  n©te,  No.   I,  pay- 
able in  30  days, . 


Bought  of  Howe,  Mather,  &;  Co., 
Goods,  as  per  Invoice,  .     .     . 


Effected  Insurance  with  John  Trust,  on  Goods, 
per  the  Ocean,  for  New-Orleans.  Premium 
and  Policy,.     .     .     , 


14 


22 


Shipped,  per  the  Ocean,  for  New-Orleans,  and 
consigned  to  Brown  &  Co.,  for  sales,  and  re- 
turns on  our  account,  Goods,  as  per  Invoice, 

amounting  to        *4,000  00 

Charges,  at  shipping,  .     .     .     .     ;  40  50 

Insurance,  as  above, 80  00 


Bought  of  Wm.  H.  Imlay, 

30  Shares  Hartford  Bank-Stock,  at  $108  per 

•  share.     Passed  in  payment,  our  note.  No.  1,  at 

30  days, 


Bought,  at  auction,  on  joint  account  with  Solo- 
mon Porter,  each  one  half  concerned, 
40  hhds.  Sugar,  as  per  Invoice,     .     2,400  00 

For  one  half  of  which,  passed  our  note,  No.  2, 
60  days, 


*  The  teacher  may  give  out  portions  of  this  Day-Booft  to  his  class  to  study,  and  they 
should  study  the  same,  so  as  to  be  able  to  give  the  Journal-entries  when  the  teacher  reads  them 
before  the  class,  and  the  reason  why  they  journalize  thus ;  but  not  bring  the  Journal-entries  in  on 
paper,  as  is  customary,  for  these  may  be  taken  from  the  book. 


DAY-BOOK SET  III. 


163 


Hartford,  July  \st,  1837. 


July    1 


15 


20 


Received  from  London,  Merchandise,  by  the  At- 
lantic, consigned  to  us  by  N.  Swan,  to  be  sold 
for  his  account,  as  per  Invoice,  .     $3,000  00 

Passed  our  note  at  Custom- House,  for  duties  on 
the  same,  at  30  days, 


Effected  Insurance  on  $5,000,  with  John  Trust 
on  Flour,  from  J.  Hart.     Premium  and  policy. 


Ordered   from  J.    Hart,   New- York,   488   bbls 

Flour,  at  $10  per  bbl.,  amounting  to  4,880  00 

Insurance,  as  above, 120  00 


Sold  Howe,  Mather,  &  Co.,  at  6  months, 

A  quantity  of  Swan's  Goods,  as  per  Sales- 
Book, 


Ace  pted  Collins  &  Son's  Draft,  No.  3  1-2,  pay 
able  to  T.  M.  &  J.  Allyn,  30  days  sight,    . 


To  accommodate  H.  L.  Si,  C.  Porter,  we  have 
received  their  bills. 

No.  2,  on  S.  Tudor,     June  4,  3  m.    800  00 

"    3,  "   J.Olmsted,     "  12,2m.  1,250  00 

"    4,  "    A.Watkinson,"  18,  1  m.  2,000  00 

For  which  we  have  granted  our  Acceptance 

No.  4,  payable  to  their  order,  July  20,  6  mo.. 


24 


28 


Sold  Brace  &  Bunce,  at  4  months, 

20  hhds.  Co.  A.'s  Sugar,  as  per  Sales-Book, 


Sold  Howe,  Mather,  &  Co., 

A  quantity  of  Swan's  Goods,  as  per  Sales-Book, 


1,400 


120 


00 


00 


5,000 


00 


733  33 


2,000 


00 


4,050 


1,500 


9,000 


00 


00 


00 


23,803  33 


164 


DAY-BOOK — SET  III. 


Hartford,  August  \st,  1837. 


1837   I 
Aug.    1  Sold  A.  &  C.  Day,  &  Co., 

Remainder  of  Swan's  Goods,  per  Sales-Book, 


Received  of  Howe,  Mather,  &  Co.,  their  bill.  No 
5,  10  days  sight,  Aug.  4,  on  H.  Hudson,    . 


Made  up  account-sales.  Swan's  Goods,  per  At 

lantic,  as  per  Sales-Book, 
Sales,  amount  to    .     .     17,733  33 
For  duties  posted,      .       1,400  00 

Charges, 200  00 

Commission, 314  33 

N.  Swan's  net  proceeds,      ....  15,819  00 


12  Received  from  Brown  &l  Co.,  account-sales  of 
Goods,  consigned  to  them,  per  the  Ocean, 

Net  proceeds, 5,500  00 

For  which  they  have  remitted  us  their  bill,  No 
6,  on  Prime,  Ward,  &  King,  30  days  sight 
which  is  accepted, 


"    23 


24 


"    26 


28 


Bought  of  Hills  &  Bolter,  2  months. 
Cotton  Cloth,  as  per  Invoice,  .     . 


Bought  of  Samuel  Speculator, 

2,750  acres  of  land  in  Michigan,  at  $2,00  per 
acre, 5,500  00 

Indorsed  to  him  in  exchange,  bill,  No.  6,  due 
Sept.  7, 


8,000 


8,000 


16,333 


00 


00 


33 


5,500 


3,000 


00 


00 


Received  of  R.  Watkinson  &  Co.,  to  sell  on  joint 
account,  6,000  yards  Cotton-Check,  as  per  In 
voice, .     3,000  00 

Our  half  of  which  is      . 


Bought  of  A.  &  C.  Day,  &  Co.,  on  our  bill,  No 
5,  Aug.  27,  60  days.  Goods,  as  per  Invoice,   . 


5,500 


00 


1,50000 


1,200 


49,033 


00 
33 


DAY-BOOK — SET  III. 


165 


Hartford,  August  30iA,  1837. 


1837 
Aug.  30 


Sept.  1 


12 


20 


"  23 


Sold  Daniel  Buck  &  Co., 
Remainder  of  Co.  A.'s  Sugar,  as  per  Sales-Book, 


September  \st.,  1837. 

Sold  Puffing  Manufacturing  Company, 
40  bales  Cotton,  as  per  Sales-Book, 


Accepted  J.  Hart's  draft  on  us,  for  Flour,  ship- 
ped last  month,  No.  6,  payable  to  A.  &  C, 
Day,  &  Co.,  60  days, 


Made  settlement  through  John  Trust,  for  the 
total  loss  of  Flour,  insured  July  4 — amount  re 
covered, 


Sold  R.  Watkinson  &  Co.,  at  3  months. 
Remainder  of  Cotton,  as  per  Sales-Book, 


Sold  Howe,  Mather,  &  Co., 

Cotton-Check,  Co.  B.,  as  per  Sales-Book, 


Made  up  account-sales,  Co.  A.'s  Sugar, 
Total  sales,     ....     3,100  00 

Our  Commission, 60  00 

Charges  for  freight,  cartage,  &c.,    .        40  00 
Net  proceeds  to  Solomon  Porter,       1,500  00 


The  Puffing  Manufacturing  Co.  have  become  in- 
solvent, and  we  have  compromised  with  them 
at  50  per  cent.. 
Our  loss, 1,000  00 

Received  Goods,  for  balance,       -     •     1,000  00 


1,60000 


2,00000 


5,000 


3,000 


1,800 


00 


00 


00 


1,600 


00 


2,00000 


21,88000 


166 


DAY-BOOK SET  III. 


Hartford,  September  26th,  1837. 


1837 
Sep.  26 


28 


30 


Made  up  account-sales,  Co.  B.'s  Goods, 
Balance,  on  hand,     .     .     2,000 

Commission, 36  00 

R.  Watkinson  &  Co.'s  net  proceeds,     882  00 


Sold  A.  M.  Collins  &  Sons, 

Merchandise,  as  per  Sales-Book, 


Closed  up  accounts,  this  day,  and  charged  the 

following  persons  with  Interest : 
A.  Watkinson,  in't.  on  $400,  2  m.  19  days,  5  26 
N.  Harris  "     "     400,  1  "     5     "     2  33 

S.  W.  Hanks,     "     "     200,  22     "         73 


Stock  is  credited  by  interest  on  joint  capital, 
$20,000,  4  months,       


Memorandum. 

Balance  of  Merchandise,  as  per  Inventor)',  taken 
this  day,  amounts  to      .     .    2,600 


Balance  on  hand,  of  Co.  B.'s  Goods,  as  per  In- 
ventory, our  half  of  which  is  1,000. 


Present  value  of  ship,  Europe,  7,700. 


918 


1,200 


400 


2,526 


00 


00 


832 


00 


32' 


The  Memoranduniy  instead  of  being  made  on  the  Day-Book,  as  above,  is  usually  recorded  on  a 
book  purposely  prepared,  called  the  Inventory-Book. 

The  value  of  the  above  named  items  of  property,  must  be  transferred,  each  to  the  Cr.  side  of  j 
its  respective  account  in  the  Ledger,  immediately  after  the  Trial-Balance  is  taken.  Each  of  ' 
those  accounts  being  made  Dr.,  to  llw  value  of  what  was  carried  into  business,  and  of  what  was  ' 
purchased  under  such  heads,  is  consequently  made  Cr.  for  all  sums  received,  and  for  the  value  j 
of  what  remains  unsold  when  the  accounts  are  equilibrated.  In  this  case,  the  Merchandise  is  l 
credited  $2,600  ;  Merchandise,  Co.  B.,  $1,000  ;  and  ship,  Europe,  $7,700.  j 

I 


DAILY-JOURNAL. 

Set  III. 
DOUBLE-ENTRY. 

HANKS,  HARRIS,   &    Co. 


168 


JOURNa£^ — SET  III. 


Hartford,  June  \st,  1837. 


Merchandise,  Dr. 

To  A.  M.  Collins  <Sf  Sons, 

Cloth,  purchased  of  them. 
■ 2nd.y 


Bills  Receivable,  Dr: 


To  Merchandise, 


No.  1,  payable,  in  30  days. 
8th., 


Merchandise,  Dr. 

To  Howe,  Mather,  6f  Co. 


Insurance,  Dr. 


To  John  Trust, 

On  goods,  shipped  to  New-Orleans. 

J  4th. 


Shipment  to  New-Orleans,  Dr. 

To  Sundries, 
To  Merchandise,  .    from  store,    .     . 
"  Charges,     .     .     at  shipping,       . 
"  Insurance,  .     .     with  J.  Trust.   . 


--22nd., 


Hartford  Bank-Stock,  Dr. 

To  Bills  Payable, 

Bonghtof  W.  H.lmlay. 


Merchandise,  Co.  A.  Dr. 

To  Bills  Payable, 


Purchased,  with  S.  Porter. 


Dr. 

2,286 


44 


1,800 


00 


1,200 


80 


56 


00 


4,120 


3,240 


1,200 


13,927 


50 


Cr. 

2,286 


44 


00 


00 


50 


1,80000 


1,200 


8C 


4,000 
40 
80 


,240 


1,200 


13,927 


56 


00 


00 


00 


50 


Note. — Where  goods  are  received,  to  be  sold  on  joint  account,  as  those  with  Porter,  it 
is  necessary  to  make  a  separate  account  with  them,  that  it  may  be  known  how  much  has  been 
paid,  and  how  much  received  for  them. 

When  goods  are  received,  to  be  sold  in  that  way,  we  open  an  account  with  the  first  parcel  un- 
der the  title,  Merchandise,  Company  A.,  and  with  the  second  parcel,  the  title,  Merchandise,  Com- 
pany B.,  and  so  on  alphabetically. 


JOURNAL SET  III. 


169 


Hartford,  July  \st,  1837. 


Swan's  Consignment,  Dr. 

To  Bills  Payable, 

Passed,  at  Custom-House. 
^th. , 


Insurance,  Dr. 


To  John  Trusty 


On  Floor,  from  J.  Hart. 
6iA., 


Flour,  Dr. 

To  J.  Hart, 
"  Insurance, 


To  Sundries, 


■9th. 


Howe,  Mather,  &  Co.,  Dr. 

To  Swanks  Consignment, 


-15th., 


A.  M.  Collins  <fc  Sons,  Dr. 

To  Bills  Payable, 


Their  Draft,  on  us. 

20th., 


Bills  Receivable,  Dr. 


To  Bills  Payable, 


In  exchange,  with  H.  L.  &  C.  Porter. 
24th., 


Brace  &  Bunce,  Dr. 

To  Merchandise,  Co.  A. 

20  hhds.  Sugar. 
28th. , 


Howe,  Mather,  &  Co.,  Dr. 


To  Swan's  Consignment, 


Dr. 
1,400 


120 


5,000 


00 


00 


00 


733 


2,000 


4,050 


1,500 


9,000 


23,803 


33 


00 


00 


00 


00 


33 


Cr. 
1,400P0 


120 


4,880 
120 


733 


2,000 


4,050 


1,500 


9,000 


23,803 


00 


33 


00 


00 


00 


The  Ledger  is  made  from  this  .Journal,  and  not  from  the  Monthly  form  of  Journal,  which  is 
on  the  succeeding  pages,  that  being  given  as  a  form  and  not  necessarily  connected  with  this  Set 
of  Books,  although  made  from  the  transactions  recorded  on  Day-Book,  Set  3rd. 


no 


JOURNAL — SET  III. 


Hartford,  August  \st,  1837. 


A.  &  C.  Day,  &  Co.,  Dr. 

To  Swan's  Consignment, 

4th., 


Bills  Receivable,  Dr. 

To  Howe,  Mather,  <^  Co. 

No.  5,  on  H.  Hudson. 
8th., 


Swan's  Consignment,  Dr. 

To  Sundries, 
To  Charges,      .     .     postage,  &c.,   . 
"  Commission,     .     our  commission, 
"  N  Swan,    .     .     net  proceeds,    . 


i2th. 


Bills  Receivable,  Dr. 

To  Consignment  to  New-Orleans, 


Received  from  Brown  &  Co. 

2Zrd., 


Merchandise,  Dr. 

To  Hills  6f  Bolter, 


Real-Estate,  Dr. 


For  Sugar. 

— 2Ath.. 


To  Bills  Receivable, 


For  land,  in  Michigan. 
2Qth., 


9 


Merchandise,  Co.  B.,  Dr. 

To  R.  Watkinson,  <^  Co., 

To  be  sold,  on  joint  account. 

2Sth. , 


Merchandise,  Dr. 


To  Bills  Payable, 

Passed,  to  A.  &  C.  Day,  &  Ca 


Dr.    I 
8,000 


8,000 


00 


00 


16,333 


33 


5,500 


3,000 


5,500 


1,500 


1,200 


oc 


00 


00 


00 


00 


49,033 


Cr.    I 
8,00000 


8,000 


00 


200 

314 

15,819 


5,500 


3,000 


5,500 


00 
33 
00 


00 


1,50000 


1,200 


49,033 


00 


00 


JOIJRNAL SET  III. 


171 


Hartford,  August  ^Qth,  1837. 


D.  Buck  &  Co.; Dr. 

To  Merchandise,  Co.  A., 

September  1st,, 


Puffing  Manufacturing  Co.,  Dr. 

To  Cotton, 

^th. , 


J.  Hart,  Dr. 


To  Bills  Payable, 


His  Draft  on  us,  for  Flour. 
Qth., 


John  Trust,  Dr. 


To  Flour, 

For  Floar,  lost  at  sea, 
9th., 


R.  Watkinson,  &  Co.,  Dr. 

To  Cotton, 

I2tk, 


Howe,  Mather,  &  Co.,  Dr. 

To  Merchandise,  Co.  B. 


-20th. 


Merchandise,  Co.  A.,  Dr. 

To  Sundries, 
Commission,    .     ,     our  commission, 
Charges,      .     .     .     freight,  &c.,     . 
S.  Porter,     .    .     .     net  proceeds,    . 

23rd., 


Sundries,  Dr. 

To  Puffing  Manufacturing  Co., 
Profit  and  loss,   on  composition. 
Merchandise,  .  received  for  balance. 


Dr. 
1,600 


2,000 


4,880 


5,000 


3,000 


1,800 


1,600 


1,000 
1,000 


00 


00 


00 


00 


00 


00 


00 


21,88000 


Cr 
1,600 


2,000 


4,880 


5,000 


3,000 


1,800 


60 

40 

1,500 


2,00000 


00 


00 


00 


00 


00 


00 


00 
00 
00 


21,88000 


172 


JOURNAL SET  III, 


Hartford,  September  26th,  1837. 


Merchandise,  Co,  B.,  Dr. 

To  Sundries, 
To  Commission,    .    our  commission, 
"  R.  Watkinson  &  Co.,  net  proceeds, 

28th. , 


A.  M.  Collins  &  Sons,  Dr. 

To  Merchandise, 

30th., 


Sundries,  Dr, 

To  Interest, 
A,  Watkinson,     .     on  cash  withdrawn, 
N.  Harris,       .     .      "      "  " 

S.  W.  Hanks,      .      "      " 


Interest,  Dr. 


To  StocL 


On  joint  capital. 


Dr. 

918 


00 


1,200 


00 


400 


00 


2,526 


32 


Cr. 


36 

882 


1,200 


400 


2,526 


00 


32 


00 


32 


It  will  be  seen  that  the  principles  here  involved  in  journalizing  are  the  same  as  those  of 
Journal— Set  I.  This  method  of  journalizing  daily,  is  the  most  judicious,  where  the  Journal  is 
a  separate  book  ;  but  where  the  Day-Book  and  Journal  are  the  same  book,  with  the  Day-Book 
on  one  folio,  and  the  Journal  on  the  opposite  one,  the  mode  adopted  in  Set  1st,  is  recommended. 


DIRECTIONS 

FOR  POSTING  FROM  THE  DAILY  JOURNAL 

AH  the  sums  recorded  on  the  Day  and  Cash-Books  being  now 
arranged  on  the  Dr.  and  Cr.  sides  of  the  Journal,  (according  to 
rules  given  for  JournaUzing)  are  next  to  be  posted  to  the  Ledger. 
The  name  of  every  person  ^nd  thing  transferred  to  the  Journal, 
must  be  written  in  a  large,  round  hand,  in  the  Ledger,  each  occu- 
pying one  half  or  a  v^^hole  page. 

The  Stock- Account  should  stand  first,  and  the  Profit  and  Loss- 
Account,  with  all  others  which  are  kept  to  ascertain  what  is  made 
or  lost  on  the  business,  may  be  opened  on  successive  foKos.  The 
Personal- Accounts  may  also  occupy  continuous  pages,  and  the 
Balance- Account  may  be  the  last  in  the  Ledger. 

At  the  Dr.  side  of  any  account  now  opened,  post  every  sum  of 
the  same  title  from  the  Dr.  side  of  the  Journal ;  and  at  the  Cr. 
of  any  account  in  the  Ledger,  post  every  sum  from  the  Cr.  side 
of  the  Journal  of  the  same  title  as  that  account. 

As  you  post  each  sum  at  the  Dr.  side  of  its  respective  account, 
write  on  the  same  line  with  the  sum,  the  title  of  the  account  that 
is  credited  for  the  same  amount ;  that  is,  the  corresponding  Jour- 
nal entry. 

EXAMPLE. 

See,  on  Journal,  page  1,  Merchandise  on  the  Dr.,  and  A.  M. 
Colhns  &  Sons  on  the  Cr.,  $2,286  44.  Next,  see  those  accounts 
in  the  Ledger,  and  on  the  Dr.  side  of  the  Merchandise- Account 
will  be  found  "  To  A.  M.  Collins  &  Sons,"  $2,286  44  ;  and  on 
the  Cr.  side  of  A.  M.  Collins  and  Sons'  account,  will  be  found 
"  By  Merchandise,"  $2,286  44. 

Again  :  on  the  same  page  of  Journal,  see  Bills  Receivable  on 
the  Dr.,  and  Merchandise  on  the  Cr.  side.  Next,  see  those  ac- 
counts in  the  Ledger,  and  on  the  Dr.  side  of  Bills  Receivable,  will 

P* 


174  DIRECTIONS    FOR    POSTING. 

be  found,  "To  Merchandise,"  $1,800;    and  on  the  Cr.  side  of 
Merchandise,  will  be  found,  "  By  Bills  Receivable,"  $1,800. 
.    Hence  the  rule  for  posting  : 

"  The  thing  received  is  debited  To  the  thing  given,  or  To  the 
person  who  has  trusted  you. 

The  thing  parted  with  is  credited  By  the  thing  received,  or  By 
the  person  whom  you  have  trusted." 

When  there  are  two  or  more  Cr.  entries  and  one  Dr.  entry  of 
the  same  transaction  on  the  Journal,  the  account  bearing  the  same 
title  in  the  Ledger,  is  made  Dr.  "  To  Sundries,"  and  each  of  the 
Cr.  entries  has  its  account  credited  By  the  account  now  debited, 
for  its  respective  sum. 

EXAMPLE. 

See,  on  page  1,  the  Journal-entries  of  June  14,  and  then  exam- 
ine the  accounts.  Consignment  to  New-Orleans,  Merchandise, 
Charges,  and  Insurance.  Consignment  to  New-Orleans  is  Dr. 
"  To  Sundries,"  $4,120  50  ;  Merchandise  is  Cr.  "  By  Consign- 
ment to  New-Orleans."  $4,000 ;  Charges,  "  By  Consignment  to 
New-Orleans,  $40  50 ;  Insurance,  "  By  Consignment  to  New- 
Orleans,"  $80. 

When  there  is  one  Cr.  and  two  or  more  Dr.  entries  of  the  same 
transaction  on  the  Journal,  the  Cr.  entry  has  its  account  in  the 
Ledger,  Cr.  "  By  Sundries,"  and  the  Dr.  entries  have  their  ac- 
counts made  Dr.  "  To  the  account  now  credited." 

EXAMPLE. 

See  Journal-entries  of  September  23rd,  and  their  accounts  in 
the  Ledger. 

When  there  are  on  the  Journal,  two  or  more  Cr.  and  Dr.  en- 
tries of  the  same  transaction,  each  has  its  respective  account  cre- 
dited and  debited  "  By,  and  To  Sundries." 


MONTHLY  -JOURNAL. 

Set  in. 
DOUBLE-ENTRY. 

HANKS,  HARRIS,   &    Co 


176 


JOURNAL — SET  III. 


Hartford,  June,  1837. 


Merchandise,  Dr.  to  Sundries. 

To  A.  M.  Collins,  <fe  Sons,  1st.,  Goods, 

per  Invoice, 

"  Howe,  xMather,  &  Co.,  8tli.,  ditto. 


Bills  Receivable,  Dr.  to  Mdse. 
2nd.,  Hudson  &  Putnam,  No.  1,  30  days. 


Insurance,  Dr.  To  John  Trust, 

8th.,  on  Goods,  per  Ocean,  for  New-Or- 
leans,    .......... 


Shipment  to  New-Orleans,  Dr.  to 
Sundries. 

To  Merchandise,  14th,  amounting  to     . 
3|   "  Charges,     .     .         at  shipping, 

Insurance,  as  above, 


Sundries,  Dr.  To  Bills  Payable, 

Hartford  Bank-Stock,  22nd.,       ,     . 
Merchandise,  Co.  A., 


Hartford,  July,  1837. 


Sundries,  Dr.  to  Bills  Payable. 

Swan's  Con'sgt.  1st.,  No.  3,  for  duties, 
A.  M.  Collins,  &l  Sons,  15th,      .     . 
Bills  Receivable,  20th.,     .... 


2,28644 
1,20056 


4,000 
40 
80 


3,240 
1,200 


1,400 
2,000 
4,050 


3,487 


1,800 


00 


00 


80 


00 


4,120 


4,440 


7,450 


50 


00 


00 


*  This  Journal  is  made  from  Day-Book,  Set  3,  embodying  all  the  transactions  of  4  months 
business,  in  a  monthlt/ form.  Ledger,  Set  3,  is  not  made  from  this  Journal,  but,  as  many  practice 
this  mode  of  Journalizing,  I  give  this  as  the  most  judicious  plan  of  a  Monthly  Journal.  Rules 
for  journalizing  and  posting,  monthly,  immediately  succeed  this  form. 


JOURNAL SET  III. 

Hartford,  July,  1837. 

Insurance,  Dr,  to  John  Trust. 
4th,.  on  Flour.     Premium  and  Policy, 

Flour,  Dr.  to  Sundries, 

To  J.  Hart,  480  bbls.  Flour,  6th.,    .     .     . 
"  Insurance,  6th., 

Howe,  Mather,  &;  Co.  Dr.  to  Swan's 
Consignment. 

9th.,  as  per  Sales-Book, 

28th.,  "    "       "        "....... 

Brace&Bunce,  Dr.  to  Merchandise, 
Company  A. 
24th.,  as  per  Sales-Book, 

Hartford,  August,  1837. 

Merchandise,  Dr.  to  Sundries. 

To  Hills  &  Bolter,  23rd., 

"  Bills  Payable,  28th., 

Bills  Receivable,  Dr.  to  Sundries. 

To  Howe,  Mather,  &  Co.,  4th.,       .     .     . 
"  Consignment  to  New-Orleans,  12th., 

Swan's  Cons'gt.,  Dr.  to  Sundries. 

To  Charges,  8th., 

"  Commission,  8th.,    ,    .     .     .     .     .     . 

"  N.  Swan,  8th., 

23 


177 


4,880 
120 


733 
9,000 


3,000 
1,200 


8,000 
5,500 


20000 
31433 


15,819 


00 


12000 


5.000 


9,733 


1,500 


4,200 


13,500 


16,333 


00 


33 


00 


00 


00 


33 


178 


JOURNAL-^SET  III. 


Hartford,  August,  1837. 


A.  &  C.  Day,  &  Co.,  Dr.  to  Suxin's 
Consignment  1st.,        .     .     .     . 


Real-Estate,  Dr.  to  Bills  Receivable 
24th. 


Merchandise,  Co.  B.,  Dr.  to  R.  Wat- 
kinson,  dSf  Co.,  26th.,   .... 


D.  Buck,  &  Co.,  Dr.  to  Merchandise 
Company  A.,  30th., 


Hartford,  September,  1837. 


Merchandise,  Co.  B.,  Dr.  to  Sundries, 

To  R.  Watkinson  &  Co.,  26th., .     .     . 
"  Commission,  26th., 


Sundries,  Dr.  to  Cotton, 

Puffing  Manufacturing  Co.,  1st., 
R.  Watkinson,  &  Co.,  9th.,    .     , 


J.  Hart,  Dr.  to  Bills  Payable,  4th. 


John  Trust,  Dr.  to  Flour,  6th.,   . 


Howe,  Mather,  &  Co.,  Dr.  to  Mer- 
chandise, Co,  B.,  12th.,    ... 


882 
36 


2,000 
3,000 


8,000 


5,500 


1,600 


00 


00 


00 


00 


918 


5,000 


4,880 


5,000 


00 


00 


00 


00 


1,80000 


JOURNAL — SET  III. 


179 


Hartford,  September^  1837. 


Merchandise,  Co.  A,,  Dr.  to  Sun- 
dries, 

To  Commission,  20th., , 

Charges, 


S.  Porter 


Sundries,  Dr.  to  Puffing  Manu.  Co. 

Merchandise,  23rd., 

Profit  and  Loss 


A.  M.  Collins  &  Sons,  Dr.  to  Mer- 
chandise, 28th., 


Interest,  Dr.  to  Stock,  30th., 


Sundries,  Dr.  to  Interest, 

A.  Watkinson,  30th.,  .  .  . 
N.  Harris,  "  ... 
S.  W.  Hanks, 


6000 


40 


00 


1,50000 


1,000 


1,600 


00 


2,000 


1,200 


400 


00 


00 


00 


32 


INVENTORY 

Of  Goods  taken  September  30th.,  1837,  is  as  follows. 


Sept.  30 

T 

1 

(      (( 

250  yds.  Linen, 

t^  25  cts.,      . 

62 

50 

(      (( 

80      "     Cotton,      . 

fij  12  1-2  cts.. 

10 

00 

i           n 

50      "     Carpeting, 

0)  $2,00   .     . 

100 

00 

i         a 

25      "     Broadcloth, 

®  $4,00,  .     . 

100 

00 

i          n 

10,000  Spools  Thread, -0)  1  ct.,     .     . 

100 

oo| 

i         a 

5  lbs.  Sewing  Silk, 

^CO  $3,00,  .     . 

15 

ool 

(         (( 

100  skeins  Yarn, .    . 

CD  25  cts.,      . 

25 

00 

(         (( 

40  pairs  Woolen  Hose,  ®  50  cts., 

20 

00 

I         (( 

400    "    Cotton,      " 

n  25  cts.,      . 

100 

00 

(         (( 

200  yds.  Sheeting,  . 

n  10  cts.,    . 

20 

oo! 

(         (( 

400     "    Shirtings    . 

«)  12  1-2  cts., 

50 

00| 

i           u 

800  pairs  Mittens,    . 

U  12  1-2  cts.. 

100 

00, 

i         li 

3,000  doz.  Pearl  Buttons,  ^  3  cts.,  . 

90 

00 

I         it 

200       "     Brass,    " 

e  12  cts.,.      . 

24 

00 

<         (( 

500  pieces  Tape,      . 

0)  6  cts.,  .     . 

30 

00! 

i           n 

50  Horse  Blankets, 

t!)$l,00,   .     . 

50 

ool 

i         li 

25  Ladies  Muffs,     . 

n  $4,00,  .      . 

100 

00 

i         a 

3  pieces  Cassimer, 

^  $25,00,      . 

75 

00 

i         a 

7       "      Satinet,     . 

n  $12,00,    . 

84 

00 

i         a 

1-2  yd.  Vesting,    . 

50 

i         li 

20  hhds.  Sugar, 

0)  $50,00,      . 

1,000 

00 

i         a 

80  bbls.  Flour,    .     . 

e  $5,00,  .     . 

400 

00 

i                    (( 

4  bags  Coffee,     .     . 

€)  $11,00      . 

44 

00 

$2,600 

00 

— 1 

When  an  Inventory  is  taken,  all  the  items  should  be  entered 
into  a  book,  prepared  for  that  purpose,  called  the  Inventory-Book. 


DIRECTIONS 


TO  POST  THE  MONTHLY  JOURNAL 


l8t. 

Cash,  Dr. 


Where  Cash  is  received^ 

(  Debit  Cash  "  To  Sundries,"  for  the  whole 
I  amount  of  Cash  received  through  the  month. 
i  And, 

Credit  the  several  accounts,   "  By  Cash," 
^  *each  for  its  respective  amount. 


2nd. 
Cash.  Cr. 


Where  Cash  is  paid  away, 

Credit  Cash  "  By  Sundries,"  for  the  whole 
amount  paid  out  through  the  month.     And, 

Debit  the  several  accounts,  "To  Cash," 
*each  for  its  respective  amount. 

Where  Notes  are  received,  \ 

r     Debit  Bills  Receivable,  "  To  Sundries,"  for 
g^j  the   whole   amount   of   Bills   received   this 

Bills  Receivable,  Dr.      <   mOUth.       And, 

Credit  the  several  accounts  "By  Bills  Re- 
^  ceivable,"  *each  for  its  respective  amount. 

Where  you  part  with  Bills  Receivable, 

f      Credit  Bills  Receivable    "  By  Sundries," 
4jjj  I  for  all  such  bills  parted  with  through  the 

BiU8  Receivable,  Cr.      ^  month.       And, 

Debit  the  several  accounts  "  To  Bills  Re- 
[  ceivable,"  *each  for  its  respective  amount. 

Where  you  redeem  your  own  Notes, 

[     Debit  Bills  Payable  "To  Sundries,"  for  the 


5th. 
Bills  Payable,  Dr. 


6th. 
BtUs  Payable,  Cr. 


whole  amount  of  such  bills  redeemed  through 
<  the  month.     And, 

Credit  the  respective  accounts   "By  Bills 
Payable,"  *each  for  its  respective  amount. 


Where  you  part  with  your  own  Notes, 

'     Credit  Bills  Payable,   "  By  Sundries,"  for 
the  whole  amount  of  Bills  parted  with  in  the 
-<  month.     And, 

Debit  the   several  accounts,    "To   Bills 
[  Payable,"  *each  for  its  respective  amount. 


7th. 
Merchandise,  Dr. 


182  DIRECTIONS  TO  POST  THE  MONTHLY  JOURNAL. 

Where  Merchandise  is  purchased, 

Debit  Merchandise,  "  To  Sundries,"  for  the 
whole  amount  purchased  through  the  month. 
And, 

Credit  the   several  accounts,   "By  Mer- 
^  chandise,"  *each  for  its  respective  amount. 

Where  Merchandise  is  sold, 

i      Credit  Merchandise,  "By  Sundries,"  for 
the  whole  amount  sold  through  the  month. 
And, 
Debit  the  several  accounts,  "To  Merchan- 
1^  disc,"  *each  for  its  respective  amount. 

Where  Goods  consigned,  are  sold, 

(      Credit  Sales,  (consigner's  name,)  "By  Sun- 
9th.  dries,"  for  all  sales  in  the  month.     And, 

ToS&'^name.T'  <  Debit  the  scvcral  accounts,  "To  Sales," 
I  (consigner's  name,)  *each  for  its  respective 
t  amount. 

When  Account- Sales  is  made  up 

Debit  Sales  (consigner's  name,)  for  all  ex- 
pense on  said  Goods  in  the  month.     And, 

Credit  the  several  accounts,  "  By  Sales," 
(consigner's  name,)  *each  for  its  respective 
amount. 


10  th. 

Sales  (Consigner's  name,) 

Dr  to  Sundries. 


*  1st.  "  Each  account."  The  account  of  each  Person  who  has  paid  the  owner  of  the  Books,  Cash 
on  account,  and  of  each  tthing  for  which  Cash  has  been  received. 

*  Qnd.  The  account  of  each  Person  to  whom  the  owner  of  the  Books  has  paid  Cash  on  account,  and 
of  the  thing  received  as  an  equivalent  for  the  Cash. 

*  3rd.  The  account  of  each  Person  who  has  given  the  owner  of  tlie  Books,  his  Note  on  account, 
and  of  the  thing  given  as  an  equivalent  for  the  Note. 

*  4th.  The  account  of  the  thing  received  as  an  equivalent  for  the  Note. 

*  5th.  The  account  of  the  thing  given  to  redeem  the  Note. 

*  6th.  Tlie  account  of  each  Person  to  whom  the  owner  of  the  Books  has  given  his  Note  on  ac- 
count, and  of  the  thing  received  as  an  equivalent  for  the  Note. 

'  7th.  The  account  of  each  Person  who  has  trusted  the  owner  of  the  Books  for  Merchandise,  and 
of  the  thing  given  as  an  equivalent  for  Jlerchandise. 

*8th.  The  account  of  each  Person  whom  the  owner  of  the  Books  has  trusted  for  Merchandise, 
and  of  the  thing  received  as  an  equivalent  for  Merchandise. 

*9th.  The  account  of  each  Person  who  has  bought  of  the  consigned  goods,  on  account,  and  of 
the  thing  received  as  an  equivalent  for  consigned  goods. 

*  10th.  The  account  of  Commission,  Insurance,  Charges,  and  of  the  Consigner  of  the  net  proceeds. 

t  Each  purchaser  gives  something  as  an  equivalent  for  what  he  purchases,  or  pledges  himself  so 
to  do  hereafter ;  hence,  when  any  account  is  made  Dr.  $5,000,  one  or  more  accounts  must  be  credited 
for  an  equal  amount ;  and  vice  versa. 


LEDGER. 

Set  III. 
D  0  U  B  L  E  -  E  N  T  R  Y. 

HANKS,   HARRIS.  &  C 


ALPHABET. 


B. 

Bills  Payable,       .....  5 

Bills  Receivable,       ....  6 

Bank,  Hartford, 6 

Brace  &  Bunco,        ....  6 

Buck,  Daniel  &  Co.,      ...  6 

C. 

Cash, .5 

Commission,    .     .     .     .     .     .2 

Charges, 3 

Collins,  A.  M.  &  Sons,      .     .  7 

Company  A,         3 

Consignment  to  New-Orleans,  2 

Consignment,  Swan's,    ...  7 

•Cotton,        .3 

Company  B, 3 

D. 

Day,  A.  &  C.  &  Co.    .     .     .  7 

F. 

Flour,        4 

H. 

Howe,  Mather  &  Co.,  ...  7 
Hills  &  Bolter,     ..... 


Hartford,  Bank-Stock,  ...  6 

Hanks,  S.  W 8 

Harris,  N 8 

Hart,  J 8 

I. 

Insurance,       i 

Interest, 1 

M. 

Merchandise, 2 

P. 

Porter,  Solomon        ....  8 

Profit  and  Loss, 1 

Puffing  Manufacturing  Co.,     .  4 

R. 

Real-Estate, 2 

S. 

Stock, 1 

Ship  Europe, 4 

Swan,  N 9 

T. 

Trust,  John      ......  9 

W. 

Watkinson,  A 9 

VVatkinson,  R.  &  Co 9 


LEDGER — SET    III. 


185 


Dr. 


Stock. 


Or. 


1837 
Sept.30 


To  N.  Harris,    . 
"  S.  W.  Hanks, 
"  A.  Watkinson, 
"  Balance,  • .    . 


81 

402 

33 

June  1 

8| 

200 

73 

Sep. 30 

» 

405 

26 

«  a 

22,949 

99 
31 

23,958 

Oct.  1 

By  Cash,  .  .  .  . 
"  Interest,  .  .  . 
"  Profit  and  Loss, 


By  Balance, 


1 

5 

20,000 

400 

3,558 

23,958 

22,949 

H.  H.  «fe  Co.,  have,  on  the  present  opening  of  the  books,  a  joint  capital  of  $22,949  99,  hav- 
ing increased  in  the  last  four  months,  $2,949  99.  This  account  should  be  credited  by  the  in- 
terest on  the  capital  invested. 


Dr. 


Insurance. 


Cr. 


1837 
June  8 
July  4 


To  John  Trust, 


June  14 
I  July    6 


By  Consign't,  to  N.  O. 
"  By  Flour,     .    .    . 


1 

2 

80 
120 

200 

In  this  case,  the  same  amounts  have  been  received  for  Insurance  as  have  been  paid  out  for 
:he  same,  and  the  account  is  closed. 


Dr. 


Interest. 


Cr. 


1837 
3ept.30 


To  Stock, 


400 


400 


Aug.   2 
Sept.  30 


By  Cash,  .  .  .  . 
"  Sundries,  .  . 
"  Profit  and  Loss, 


1 

4 

5 

8 

387 

400 

The  Stock-Account  is  entitled  to  the  same  interest  as  if  the  money  was  lent  on  interest,  and 
each  partner  is  charged  interest  on  the  sums  withdrawn  from  the  concern.  Interest  has  cost 
us  $387  02  more  than  we  have  received,  which  we  have  consequently  lost,  and  must  go  to  the 
Dr.  of  Profit  and  Loss. 


Dr. 


Profit  and  Loss. 


Cr. 


1837 
Sept.23 
"    30 


To  Pufling  Manu.  Co. 
"  Charges,  .  .  .  . 
"  Interest,  .  .  .  . 
"  Stock, 


1,000 
839 
387 

3,558 


5,784 


83 1 


Sep.  30 


By  Merchandise,    .  . 

"  Ship,  Europe,   .  . 
"  Shipment  to  N.  O. 

"  Company  A,,    .  . 

"  Cotton,     .    ,    .  . 

"  Commission,     .  . 

"  Company  B.,    .  . 


1,913 


1,379 

300 1 00 
1,000-00 


410 


5,784 


This  is  a  synopsis  of  all  the  gains  and  losses  on  our  business  for  the  four  past  months  The 
difference  of  the  two  sides,  being  a  net  gain,  is  transferred  to  the  credit  side  of  the  Stock-Ac- 
count, and  added  wi(h  what  we  carried  into  business,  shows  the  amount  of  our  7>rM«if  property. 
The  Commission-Merchant,  hiring  his  rent  and  advertising  by  the  year,  places  all  sums  recei- 
ved for  advertising  and  storing  goods  consigned  to  him,  to  the  credit  side  of  Profit  and  Loss. 


186 


LEDGER — SET    III. 


Dr. 


Commission. 


Cr. 


1837 
Sept.  30 


To  Profit  and  Loss, 


410 


Aug.   8 
Sept.  20 


By  Swan's  Cons'gt.  . 
''  Merchandise,Co.A. 
"  Mercliandise,Co.  B. 


314  33 

60  UK, 
36.0 

410  iW 


We  have  received  $410  33,  for  selling  goods  for  sundry  individuals,  which  is  a  net  gain,  and 
goes  to  the  credit  of  Profit  and  Loss. 


Dr. 


Consignment  to  New-Orleans. 


Cr. 


1837 
June  14 
Sept.  30 


To  Sundries,     .    . 
"  Profit  and  Loss, 


4,120 
1,379 


5,500 


Aug.  12  By  Bills  Receivable,        3       5,500,00 

_5,5()0}()0 

I 


The  goods  shipped  to  New-Orleans  have  all  been  sold,  and  we  have  gained  on  the  same  $  1  :i79 
50,  which  goes  to  the  Cr.  of  Profit  and  Loss. 


Dr. 


Merchandise. 


Cr. 


1837 
June  1 
■  8 
Aug.  23 
■'  28 
>t.23 
'    30 


Oct.     1 


To  A.M.  Collins  &  Sons 
"  Howe,Mather  &  Co 
"  Hills  &  Bolter, 
"  Bills  Payable,    . 
"  Puffing  Manu.  Co 
"  Profit  and  Loss, 


To  Balance,  .    . 


1 

2,286 

44 

June  2 

1 

1,200 

56 

•'  14 

3 

3,000  001 

"  30 

3 

1,200 

00 

Sept.  28 

4 

1,000 

00 

"  30 

1 

1,913 

00 
00 

10,600 

2,600 

1 

00 

"  Cons'gt.  to  N.  O. 

"  Cash, 

"  A.M.  Collins  &  Sons 
"  Balance,  .... 


1,800 1  (tr 

4,000  lot) 
1,00(1 1 0(  • 
1,200  1 0(, 
2,600  loo 


10,600  iOti 


The  Balance,  $2,600,  is  the  value  of  Merchandise  unsoZcf  and  is  carried  to  the  Dr. 
sheet 


Dr. 


Real-Estate. 


Cr. 


1837 
Aug.  24 

Oct.    1 


To  Bills  Receivable, 
To  Balance,  .    .    . 


^500 
5,500 


Sept.  30 


By  Balance, 


5,500  00 


Our  Real-Estate  is  unsold,  valued  at  cost,  5,500.  This,  and  all  Merchandise- Accounts,  also 
Personal- Accounts,  may  be  debited  to  Interest,  at  the  option  of  the  owner  of  the  books.  The 
$5,500  goes  to  the  Dr.  side  of  the  Balance-sheet. 


LEDGER SET   III. 


187 


Dr. 


Charges. 


Or. 


1837 
June  12 
July    1 

"    30 
Sept.  23 


,120 


June  14 

Aug.   8 

Sept. 20 

"   30 


By  Cons'gt.  to  N.  O., 
"  Swan's  Cons'gt., 
"  Company  A.,    . 
"  Profit  and  Loss, 


40 
200 

40 
839 

1,120 


In  this  case  we  have  paid  out  $839  50,  in  the  shape  of  Charges,  more  tlian  we  have  received, 
which  is  a  loss,  and  is  carried  to  the  Dr.  side  of  Profit  and  Loss. 


Dr. 


Merchandise,  Co.  A. 


Cr. 


1837 
June  22 
Sept.  20 

"   30 


To  Bills  Payable,  . 
"  Sundries,  .  . 
"  Profit  and  Loss, 


1,200  00 

1,600  00 

300  00 

3,100  00 


July  24 
Aug.  30 


By  Brace  &  Bunco, 
"  D.  Buck  «&  Co., 


1,500 
1,600 


3,100 


These  goods  have  all  been  sold,  and  we  have  realized  on  the  same  $300  over  and  above  all  ex- 
penses, which  is  transferred  to  the  Cr.  of  Profit  and  Loss. 


Dr. 


Merchandise,  Co.  B. 


Cr. 


J  837 
Aug.  26 
Sept.  26 


Oct.    1 


ToR.Watkinson&Co. 
"  Sundries,  .  .  . 
"  Profit  and  Loss,    . 


To  Balance,  . 


1,500  00 
918^00 
382 j 00 

2,800  00 


1,000  00 


'  Sept.  12 
»    30 


By  Howe,  Mather,  & 

Co.,      .    .    .    .    . 

"  Balance,  .    .    .     . 


1,800 
1,000 


2,800 


In  this  Company- Account,  we  are  entitled  to  one  half  the  balance,  $2,000,  the  other  party  being 
entitled  to  the  other  half  Our  gain  is  $382,  which  is  carried  to  the  Cr.  of  Profit  and  Loss,  but 
the  Balance,   $1,000,  goes  to  the  Dr.  side  of  the  Balance-sheet. 


Dr. 


Cotton. 


Cr. 


1837 
Aug.    1 
Sept.  30 


To  Cash 

"  Profit  and  Loss, 


4,000  00 
1,000  00 

6,000 


Sept.   1 
9 


By  Puffing  Manu.  Co., 
"  R.Watkinson&Co., 


2,000 
3,000 


5,000 


The  Cotton  is  all  sold,  and  we  have  gained  on  the  same  $1,000. 


188 


LEDGER SET    III. 


Dl 


Ship  Europe. 


Cr. 


1837 
June  23 
Sept.  30 


Oct. 


To  Cash,  .     .     .     . 
"  Profit  and  Loss, 


To  Balance, 


8,000 
400 


8,400 
7,700 


Sept.  26 
"    30 


By  Cash,  . 
"  Balance, 


700 
7,700 


8,400 


We  have  gained  $400,  on  ship  Europe,  having  the  ship  on  our  hands,  valued  at  $7,700.    The 
$400  goes  to  the  Cr.  of  Profit  and  Loss. 


Dr. 


Flour. 


Cr. 


1837 
July    6  To  Sundries. 


2       5,000  00   Sept.   6  By  John  Trust,      .    .     4       5,000  00 


This  is  an  Account  of  Flour  wliich  was  lost  at  sea,  but  the  value  of  which  we  have  recovered 
of  the  underwriters,  through  .lohn  Trust,  the  Agent.  The  account  is  closed.  When  an  account 
is  closed,  it  furnishes  no  data  for  a  new  account  under  the  same  title,  and  if  entries  are  made 
under  the  same  head,  there  is  no  balance  to  be  carried  forward. 


Dr, 


Puffing  Manufacturing  Co. 


Cr. 


1837 
Sept.   1  To  Cotton, 


I 
4       2,onO  00   Sept.  23  By  Sundries, 


4       2,000  00 


This  account  is  is  closed. 


Dr. 


Hills  &  Bolter. 


Cr. 


J  837 
Sept.  30 


To  Balance, 


3,000 


00  {Aug.  23 
Oct.     1 


By  Merchandise, 
By  Balance,  .    . 


3,000 


3,000 


I  We  owe  Hills  &  Bolter  the  balance,  $3,000,  which  goes  to  the  Cr.  of  the  Balance-sheet. 


LEDGER SET    HI. 


189 


Dr. 


Cash. 


Cr. 


1837 
June  30 
July  31 
Aug.  31 
Sept.  30 


Oct.     1 


To  Sundries, 


To  Balance, 


21,000 
2,000 
4,804 

14,750 


42,554 


12,094 


June  30 
July  31 
Aug.  31 
Sept.  30 


By  Sundries, 


Balance, 


11  120 
3,940 
9,000 
6,400 

12,094 

42,554 


66 


The  balance  of  this  account,  $12,094  66  is  the  amount  of  cash  on  hand,  at  the  close  of  busi' 
ness,  and  goes  to  the  Dr.  of  the  Balance-sheet. 


Dr. 


Bills  Payable. 


Cr. 


1837 

July  22 

Aug.   2 

"      4 

"    30 

Sept.  30 


To  Cash, 


Balance, 


= 

3,240 

00 

June  22 

2 

1,400 

00 

"  22 

2 

2,000 

00 

July  1 

2 

1,200 

00 

"  15 

2 

10,130 

00 

"  20 
Aug.  28 

jSept.  4 

17,970 

00 

Oct.  1 

By  Hartford  Bank-Stk., 
"  Merchandise,Co.A., 
"  Swan's  Cons'gt., 
"  A.    M.   Collins,   & 

Sons,  .... 
"  Bills  Receivable, 
"  Merchandise,  . 
"J.Hart,    .    .    . 


By  Balance,  . 


2 

2 
2 
3 
4 

3,240 
1,200 
1,400 

2,000 
4,050 
1,200 

4,880 

17,970 

10,130 

We  owe  on  Bills,  the  balance,  $10,130,  which  goes  to  the  Cr.  side  of  the  Balance-sheet. 


Dr. 


Hartford  Bank-Stock. 


Cr. 


1837 
June  22 

Oct.    1 


To  Bills  Payable 
To  Balance,  .    , 


3,240 
"3;240 


Sept.  30 


By  Balance, 


3,240 


00 


We  have  here,  property  in  Hartford  Bank-Stock,  anriounting  to  $3,240,  which  goes  to  the  Dr. 
side  of  the  Balance-sheet. 

It  will  be  seen  that  in  this  Ledger,  the  Balances  are  all  brought  down ;  that  is,  the  Accounts 
are  re-opened. 


190 


LEDGER SET  III. 


Dr. 


Bills  Receivable. 


CV. 


1837 
June   2 
July  20 
Aug.   4 

"     12 


To  Merchandise,  .  . 
"  Bills  Payable,  .  . 
"  Howe,  Mather,  & 

Co., 

"  Consignment  to 
New-Orleans,   .    . 


1,800 
4,050 

8,000 

5,500 


19,.S50 


00 : 


July    6 

Aug.    1 

"    24 

Sept.  11 

"    14 

«    20 


By  Cash,  .    . 

"  Real-Estate 
"  Cash,  •    . 


1 

1,800 

1 

2,000 

3 

5,500 

1 

1,250 

1 

8,000 

1 

800 

19,350 

Here  is  no  balance,  all  the  Bills  having  been  paid,  and  the  account  is  said  to  be  closed. 


Dr. 


Hartford  Bank. 


Cr. 


1837 
June   8 
Sept.   1 


Oct.     1 


To  Cash, 


To  Balance, 


3,000 
4,000 


7,000 


July  25 
Aug.  24 
Sept.  30 


By  Cash,  . 
"  Balance, 


200 
2,800 
4,000 

7,000 


The  Hartford  Bank  owes  us,  at  the  close  of  business,  the  difference  of  the  two  sides  of  the 
account,  $4,000,  which  goes  to  the  Dr.  side  of  the  Balance-sheet. 


Dr. 


Brace  &  Bunce. 


Cr. 


1837 
July  24 

Oct.     1 


To  Merch'dise,  Co.  A. 
To  Balance,  .    .    . 


1,500 
T500 


Sept.  30 


By  Balance, 


1,500 


Brace  &  Bunce  owe  us  the  balance,  $1,500,  which  is  carried  to  the  Dr.  of  the  Balance-sheet. 


Dr. 


Daniel  Buck    &  Co. 


Cr. 


1837 
Aug.  30 

Oct.     1 


To  Company  A., 
To  Balance,  .    . 


00 


1,600 :  00 

I 


Sept.  30 


By  Balance, 


00 


D.  Buck  &  Co.,  owe  us  the  balance,  $1,600,  which  goes  to  the  Dr.  side  of  the  Balance-sheet. 


LEDGER SET  III. 


191 


Dr. 


Swan's  Consignment. 


Cr. 


1837 
July    1 
Aug.   8 


To  Bills  Payable, 
"  Sundries, 


1,40000 


16,333 


1  ^  I 

July    9i  By  Howe,   Mather,  &, 
Co.,      .    .    .    ;    . 


17,733  33 


Aug.    1 


A.&C.Day,&Co. 


733 
9,000 
8,000 


17,733  $» 


This  is  an  account  of  the  goods  consigned  to  us  by  Swan,  all  of  which  have  been  sold,  and  the 
account  closed.  This  account  is  said  to  be  closed  because  the  two  sides  are  equal,  without  car- 
rying in  any  balance. 


Dr. 


A.  M.  Collins  &  Sons. 


Cr. 


July  15  To  Bills  Payable, 
Sept.  281   '♦  Merchandise, 


Oct.     1 


To  Balance, 


21 1     2,000 
5  I      1,200 


3.200 


913 


June    ] 
Sept.  30 


By  Merchandise, 
"  Balance,   •    . 


1 

2,286 
913 

3,200 

A.  M.  Collins  &  Sons  owe  us  the  balance,  $913  56,  which  goes  to  the  Dr.  side  of  the  Balance- 
sheet. 


Dr. 


Howe,  Mather,  &  Co. 


Cr. 


1837 
July    9 

"     2- 
Sept.  12 


To  Swan's  Cons'gt.,  . 
"  Company  B.Mdse., 


To  Balance, 


733  33!  June  81  By  Merchandise,  . 
9,0<)0  OOi  Aug.  4'  "  Bills llcceivable, 
1,800  OOj' Sept.  30    "Balance,.     .     , 


11,533 
"2,332 


1,200  56 
8,000  loo 
2,332;'; 

11,533  33 


Howe,  Mather,  &  Co.,  owe  us  the  balance,  $2,332  77,  which  goes  to  the  Dr.  side  of  the 
Balance-sheet. 


Dr. 


A.  &  C.  Day,  &  Co. 


Cr. 


1837 
Aug.   1 


Oct. 


To  Swan's  Cons'gt., 


To  Balance, 


8,000 
4.000 


Sept.   4 

"    30 


By  Cash,  . 
"  Balance, 


4,000 
•4.000 


8,000  00 


A.  &  C.  Day,  &  Co.,  owe  us  the  balance,  $4,000,  which  goes  to  the  Dr.  of  the  Balance-sheet. 


192 


LEDGER SET    III. 


Dr. 


N.  Harris. 


Cr. 


1837 
Aug.  20 
Sept.  30 


To  Cash,  . 
"  Interest, 


400 
2 


Sept.  30 


By  Stock, 


See  Private-Ledger. 


402 
402 


Dr. 


S.  W.  Hanks. 


Cr. 


1837    I 
Sept.  8  To  Cash,  . 
"   30.  "  Interest, 


Sept.  301  By  Stock, 


Dr. 


J.  Hart. 


200 


200 


Cr. 


1837 
Sept.  4  To  Bill*  Payable 


4       4,880  00   July    4  By  Flour, 


This  account  is  closed. 


4,880  00 


Dr. 


Solomon  Porter. 


Cr. 


1837 
Sept.  30 


To  Balance,  . 


,500 


Sept.  20 j  By  Company  A, 
Oct.    II  By  Balance.  .    . 


1,500 


1,500 


I!  I  '     11 

We  owe  Solomon  Porter  the  balance,  $1,500,  which  goes  to  the  Cr.  sifle  of  the  Balance-sheet. 


LEDGER SET    III. 


193 


Dr. 


R.  WaTkinson  &  Co. 


Cr. 


1837 
Sept.   9 
'*  13 


Oct.     1 


To  Cotton, 
"  Cash,  . 


3,000 
1,500 


_4,500 
"2,118 


Aug.  26 

Sept.  26 

"    30 


By  Company  B. 
tt        ((         « 

"  Balance.  .    . 


1,500 

882 

2,118 

4,500 


In  this  case,  R.  Watkinson  «fc  Co.  owe  us  the  balance,  $2,118,  which  goes  to  the  Dr,  of  the 

Balance-slieet. 


Dr. 


John  Trust. 


Cr. 


1837 
Sept.   6 


To  Flour, 


Oct.    1,  To  Balance, 


5,000 


5,000 


4,800  00 


.June  8 
July  4 
Sept.  30 


By  Insurance, 
"  Balance,  . 


120 
4,800 


5,000 


John  Trust  owes  us  the  balance,  $4,800,  having,  as  our  agent,  received  $5,000  of  the  under- 
writers, on  Flour  lost.    The  $4,800  goes  to  the  Dr.  side  of  the  Balance-sheet. 


Dr. 


A.  Watkinson. 


Cr. 


1837 
July  12 
Sept.  30 


To  Cash,  . 
"  Interest, 


405 


Sept.  30 


By  Stock, 


405 


405 


Dr. 


N.  Swan. 


Cr. 


1837 
Sept.  30  To  Balance, 


15,819 


Aug.    8 
Oct.     1 


By  Swan's  Cons'gt.,  . 
"  Balance.  .         .    . 


15,819 


15,819 


We  owe  N.  Swan  the  balance,  $15,819,  which  is  carried  to  the  Cr.  side  of  the  Balance-sheet 


25 


R 


194 


TRIAL-BALANCES. 


Dr. 


TRIAL-BALANCE,  FOR  JUNE,  1837. 


Cr. 


Stock,  .  .  . 
Cash,  .  .  . 
Merchandise,  . 
Bills  Payable,  . 
Bills  Receivable 
Insurance,  .  . 
Charges,  .  . 
Hartford  Bank, 
Ship  Europe,  .  . 
A.  M.  Collins  &  Sons 
Howe,  Mather,  &  Co. 
John  Trust,  .  . 
Cons'gt.  to  N.  Orleans 
Hartford  Bank-Stock, 
Company  A.,     .     . 


21,00000 
3,48700 

1,80000 

8000 

12000 

3,00000 

8,00000 


4,120 
3,240 
1,200 


46,047150 


20,000 

11,120 

6,800 

4,440 

80 
40 


44 


2,286 

1,20056 

8000 


46,04750 


Dr. 


TRIAL-BALANCE,  FOR  JULY,  1837. 


Cr. 


Cash,  .  .  . 
Bills  Payable,  . 
Bills  Receivable 
Insurance,  .  . 
Charges,  .  . 
Hartford  Bank, 
A.M.  Collins  &  Sons 
Howe,  Mather,  &  Co. 

A.  Watkinson,  .     . 
Swan's  Consignment, 
Brace  &  Bunce,    . 
Flour,      .... 


2,000.00 

3,24000 

4  05000 

12000 

30000 


2,000 
9,733 


40000 


1,400 
1,500 
5,000 


J.  Hart,    .     . 
John  Trust, 
Company  A., 


29,743  33 


3,94000 


7,450 

1,800 

120 

200 

4,880 

120 

1,500 

9,733 


29,743  33 


It  will  be  remembered,  from  the  remarks  on  the  Trial-Balance  belonging  to  BooXs,  Set  I.,  that 
the  design  of  it  is  to  show  whether  the  sums  have  been  correctly  posted  from  the  Journal  to  the 
Ledger.  The  same  number  of  dollars  and  cents  should  be  posted  to  the  Dr.  as  to  ihe  Cr.  side  of 
the  Ledger,  and,  if  this  has  been  done,  it  is  evident  that  the  amount  of  the  debit  entries  will  equal 
the  aviount  oi ihc  credit  entries  when  added;  that  is,  the  Dr.  ani  Cr.  columns  of  the  Trial  will 
be  equal  when  added. 

The  Trial  of  Ledger,  Set  HI.,  is  taken  monthly,  for  June,  July,  August,  and  September.  This 
method  is  usually  p<irsued  in  business.  The  Balance-sheet  also,  appears  on  a  following  page  ; 
in  the  Dr.  Column  of  which  are  enumerated  the  effects,  and  in  the  Cr.  column  the  liabilities  (ex- 
cept the  amount  transferred  from  the  Stock- Account,  which  is  merely  placed  there  to  balance  the 
sides)  of  the  concern,  when  the  Balance-sheet  was  taken. 


TRIAL-BALANCES. 


IW 


Dr,         TRIAL-BALANCE,  FOR  AUGUST,  1837.         Cr. 


Cash,      .     .     . 
Merchandise,    . 
Bills  Payable,  . 
Bills  Receivable, 
Commission,     . 
Interest,       .     , 
Charges,      .     . 
Hartford  Bank, 
Howe,  Mather  &  Co. 
Cons'gt.  to  N.  Orleans 
Company  A.,    .     . 
N.  Harris,    .     ,     . 
Swan's  Consignmentj 
Cotton,    .     ,     .     . 
N.  Swan,     .     ,     . 
Hills  &  BolteT,     . 
A:  &  C.  Day,  &  Co 
Real-Estate,     .     . 
Company  B.,     .     , 
R.  Watkinson  &  Co., 
D.  Buck  &  Co.,    .     , 


4,804 

4,200 

4,600 

13,500 


400 

16,333 

4,000 


8,t)00 
5,500 
1,500 

1,600 


64,43799 


9,00000 


1,200 

7,500 

314 

4 


20000 
,80000 


8,000 
5,500 


1,60000 


8,000 

15,819 
3,000 


1,500 


64,437  99 


00 
00 


00 

00 
00 


00 


Dr.     TRIAL-BALANCE,  FOR  SEPTEMBER,  1837.     Cr. 


Stock,  .  .  . 
Cash,  .  .  . 
Merchandise,  . 
Profit  and  Loss, 


Interest,  , 
Charges, 
J.  Hart, 


Hartford  Bank,      .     . 

A.  M.  Collins  &  Sons, 

Howe,  Mather  &  Co., 

John  Trust, . 

Company  A., 

S.  W.  Hanks, 

N.  Harris,    . 

A.  Watkinson, 

Company  B., 

R.  Watkinson  &  Co., 


14,750 
1,000 
1,000 


40000 


700 
4,880 


4,00000 
1,200 
1,800 
5,000 
1,600 
200 
2 


918 
4,500 


526 


Bills  Payable,  , 
Bills  Receivable, 

Commission,     . 
Flour,      .     ,     , 


Ship  Europe,  .  . 
Solomon  Porter,  . 
Cotton,  .  .  .  . 
A.  &  C.  Day  &  Co., 


400 
6,400 
1,20000 


4,880 

10,050 

8 

40 

96 

5,00000 


700 
1,500 
5,000 
4,000 


1,80000 


882 


31,95632 


00 
00 
32 
00 
00 


00 


196 


TRIAL-BALANCE,  &C. 


Dr. 


TRIAL-BALANCE, 

FOR  JUNE,   JULY,   AUGUST,    AND   SEPTEMBER. 


Cr. 


Interest,  .  .  .  . 
Profit  and  Loss,  .  . 
Cons'gt.  to  N.  Orleans, 
Merchandise,  . 
Real-Estate, 
Charges,  .  .  .  . 
Merchandise,  Co.  A,. 
Merchandise,  Co.  B., . 
Cotton,  .  ;  .  .  . 
Ship  Europe,    .     .     . 


Cash, 

Bills  Payable,  .  .  . 
Hartford  Bank-Stock, 
Hartford  Bank,  .  . 
Brace  &;  Bunce,  .  . 
Daniel  Buck  &  Co.,  . 
A.  M.  Collins  &  Sons, 
Howe,  Mather  &  Co., 
A.  <fe  C.  Day,  <fe  Co., 
N.  Harris,  .  :  .  . 
S.  W.  Hanks,  .  .  . 
R.  Watkinson  &  Co., 
John  Trust,  .  .  .  . 
A.  Watkinson,  .     .     . 


400 
1,000 
4,120 
8,687 
5,500 
1,120 
2,800 
2,418 
4,000 
8,000 

42,554 
7,840 
3,240 
7,000 
1,500 
1,600 
3,200 

11,533 

8,000 

402 


20073 


4,500 

5,000 

405 


135,021  81 


Stock,     .     . 
Commission, 


Hills  &  Bolter, 


S.  Porter,     . 
N.  Swan,      . 


20,400 

12 

410 

5,500 

8,000 


00 
98 
33 
00 
00 

28050 
3,10000 
1,800 
5,000 
700 
3,000 
30,460 
17,970 


3,000 


2,286 
9,200 
4,000 

1,500 

2,382 

200 


00 
00 
00 
00 
00 
00 


00 


44 
56 
00 

00 
00 
00 


15,81900 


135,02181 


Dr. 


BALANCE-SHEET. 


Cr. 


Cash, 

Merchandise,  .  .  . 
A.  M.  Collins  &  Sons, 
Howe,  Mather,  &  Co., 
John  Trust,  .  .  .  . 
Hartford  Bank,  .  . 
Hartford  Bank-Stock, 
R.  Watkinson  &  Co., 
Brace  &  Bunce,  .  . 
A.  <fe  C.  Day,  &  Co., . 
Real-Estate,  .  .  . 
Daniel  Buck  &  Co.,  . 
Merchandise,  Co.  B., . 
Ship  Europe,    .     .     . 


12,094 
2,60G 
913 
2,332 
4,80G 
4,000 
3,240 
2,118 
1,500 
4,000 
5,500 
1,600 
1,000 
7,700 


53,398 


99 


Bills  Payable,   . 
N.  Swan,     .     . 
Hills  &  Bolter, 
Solomon  Porter, 
Stock,      .     .     . 


10,130,00 

15,81900 

3,00000 

1,50000 

22,94999 


53,398  99 


PRIVATE  LEDGER. 


Set  III. 


DOUBLE-ENTRY. 


HANKS,   HARRIS,  &  Co. 


R* 


198 


PRIVATE  LEDGER SET    III. 


Dr. 


Stock. 


Cr. 


1837 
June    1 
Bept.  30 


Oct. 


To  Sundries, 
"  Interest,  .    .    . 
"  Profit  and  Loss, 


To  Balance, 


20,000 

400 

3,558 


23,958 
22;949 


Sept.  30 


By  S.  W.  Hanks, 
"  N.  Harris,    . 
"  A.  Watliinson, 
"  Balance,  .    .  • 


200  73 
402 


405 
22,940 


23,958 


Dr. 


Interest. 


Cr. 


1837 
Sept.  30 


To  S.  W.  Hanks, 

"  N.  Harris,    , 
"  A.  Watkinson, 


Sept.  30 


By  Stock. 


400 


Dr. 


Profit  and  Loss. 


Cr. 


1837 
Sept.  30 


To  8.  W.  Hanks, 
"  N.  Harris,  . 
"  A.  Watkinson. 


1,423 
1,245 


3,558 


Sept.  30 


By  Stock, 


3,558 


REMARKS    ON   THE    PRIVATE-LEDGER. 

At  the  commencement  of  a  co-partnery,  it  is  only  necessary  to  debit  cash.  To  Stock,  for  the 
capital  in  trade,  without  particularizing  the  shares ;  or  in  opening  a  new  Set  of  Books,  where  the 
business  has  been  continued,  to  credit  the  Stock- Account,  "  By  Balance."  for  all  net  capital. 
The  share  which  each  partner  holds  in  the  concern,  is  entered  in  the  Private-Ledger,  as  the  fol- 
lowing, to  which  the  Partners  only,  and  their  confidential  clerk,  have  access. 

Hence,  in  the  Ledger  in  daily  use,  the  general  Stock-Account  contains  on  the  Cr.  side,  the 
extent  of  the  company's  original  Capital,  the  Interest  on  it,  with  the  Profit ;  and  on  the  Dr.  side, 
the  Loss,  if  that  exceed  the  Profit.  The  Private- Account  of  each  partner,  contains  on  the  debit 
side,  what  he  withdraws  from  the  capital. 

The  Private-Ledger  contains  the  following  accounts : 

1st.  The  Stock- Account,  which  contains  on  the  Dr.  side,  the  amount  of  the  company's  capital, 
the  interest  on  it,  and  the  net  profit ;  and  on  the  credit  side,  the  amount  withdrawn  by  each  of 


PRIVATE  LEDGER SET   III. 


199 


Dr. 


S.  W.  Hanks. 


Cr. 


1837 
Sept.  30 


To  Stock, 
"  Balance, 


9,583 


June    1 
Sept.  30 


Oct.    1 


By  Cash,  .  .  .  . 
"  InteroRt,  .  .  . 
"  Profit  and  Loss, 


By  Balance, 


8,000 

160 

1,423 

9,583 
9,382 


Dr, 


N.  Harris. 


Cr. 


1837 
Sept.  30 


To  Stock, 
"  Balance, 


7,983 
8,385 


June    1 
Sept.  30 


Oct.     1 


By  Cash,  .  .  .  . 
"  Interest,  .  .  . 
"  Profit  and  Loss, 


By  Balance, 


7,000 

140 

1,245 


8,385 
"7^83 


Dr. 


A.  Watkinson. 


Cr. 


1837 
Sept.  3 


To  Stock, 
Balance, 


405 
5,584 


5.989 


June    1 
Sept.  .^0 


Oct.    1 


By  Cash,  .  . 
"  Interest,  . 
"  Profit  and 


By  Balance, 


5,000 
100 


5.989 
5,584 


the  Partners.  Hence,  the  Stock- Account  in  the  Private-Ledger  is  just  the  Stock-Account  in  the 
other  Ledger,  reversed ;  and  like  it,  exliibits  the  capital  employed  in  trade,  but  in  an  opposite  point 
of  view.  The  reasons  of  this  inversion  will  appear,  when  it  is  considered  that  the  Stock-Ac- 
count is  only  one  of  property,  and  is  therefore  debited  for  the  amount  possessed. 

2nd.  The  Interest- Account  contains,  on  the  Cr.  side,  the  interest  due  on  the  joint  stock  ;^  and 
on  the  Dr.  side,  the  particular  portions  of  that  due  to  each  Partner. 

3rd.  Profit  and  Loss  contains,  on  the  Cr.  side,  the  net  gain  on  the  joint  stock  ;  and  on  the  Dr. 
side,  the  particular  shares  of  it  due  to  the  Partners.  This,  and  the  Interest-Account  are  closed 
by  transferring  the  same  to  the  Partners'-Accounts. 

4th.  The  Partners'-Accounts  contain,  on  the  Cr.  side,  the  amount  of  their  respective  shares, 
■with  the  interest  and  Profit  due  to  each ;  and  on  the  Dr.  side,  the  amount  that  each  partner  has 
drawn  from  the  concern.  These  accounts  show  the  particular  balances  belonging  to  each  Part- 
ner, and  when  added,  are  equal  to  the  joint  stock. 


BILL-BOOK. SET  III. 


Bills. 

No. 

WAen  g^ucn. 

Drawn  by 

Payable  to  whom,  and  where. 

1 
2 
3 
3 
4 
5 
6 

June         22 

((                  (( 

July            1 

15 

20 

August     28 

Sept.           4 

Ourselves, 

(( 

(( 

Collins  &  Sons, 
H.  L.  &  C.  Porter. 
Ourselves. 
J.  Hart. 

W.  H.  Imlay,  Hartford. 
Hills  &  Bolter,       " 
Custom-House,  New- York. 
T.  M.  &  J.  Allyn,  Hartford. 
His  order. 

A.  &  C.  Day  &  Co.     " 
A.  &  C.  Day  &  Co.     " 

Bills. 

No. 

When  received. 

On  account  of  whom,  and  where. 

On  whom  drawn. 

1 

2 
3 
4 
5 
6 

June           2 
July         20 

((              (( 

((              (( 

August       4 

12 

Hudson  &  Putnam,  Hartford. 
H.  L.  &  C.  Porter, 

((                           li                      a 

(I                                       H                                (( 

Howe,  Mather,  &  Co.     " 
Brown  &  Co,,  New-Orleans. 

Themselves. 

S.  Tudor. 

John  Olmsted  &  Co. 

A.  Watkinson. 

H.  Hudson. 

Prime,  Ward  &  King. 

On  this  Book  are  entered  all  the  Bills  received  or  issued,  giv- 
ing date,  amount,  time  to  run,  &c. 

When  I  dravvr  on  another  person,  or  he  gives  me  his  note,  on 
account,  I  debit  Bills  Receivable,  "  To  the  Person ;"  that  is,  the 
giver  or  acceptor,  as  the  case  may  be. 

If  I  indorse  that  Bill  to  a  person,  on  account,  the  Person  is  made 
Dr.  "  To  Bills  Receivable." 

If  I  dispose  of  it  for  cash,  or  otherwise,  the  thing  received  as  an 
equivalent  is  made  Dr.  "  To  Bills  Receivable,"  and  Bills  Receiv- 
able are  credited  by  the  account  debited. 

When  I  accept  a  person's  draft  on  me,  or  give  him  my  note, 
(which  is  virtually  the  same  thing,)  the  person  is  made  Dr.  "  To 
Bills  Payable."  When  I  give  it  otherwise  than  on  account,  the 
thing  received  as  an  equivalent  is  Dr.  "  To  Bills  Payable." 
When  I  redeem  my  bill,  Bills  Payable  are  made  Dr.  to  the  thing* 
given  as  an  equivalent. 

*  When  I  say  "  thing  given  as  an  equivalent,"  (as  I  have  made  use  of  this  term  frequently,)  I 
Cash,  Merchandise,  Real-Estate,  Shipping,  Bills,  &c. 


BILL-BOOK SET    111. 


201 


Payable. 

Term. 

When  due. 

Amount. 

Remarks. 

30  days. 
60     " 
30     " 

20  days'  sight. 

6  months. 
60  days. 

July      22 
Aug.     21 
July      31 
Aug.       4 
Jan.      20 
Oct.      28 
Nov.       4 

3,240 
1,200 
1,400 
2,000 
4,050 
1,200 
4,880 

00 
00 
00 
00 
00 
00 
00 

Receivable. 

Terms. 

When  due. 

Amount. 

Remarks. 

30  days. 

3  months. 

2  months. 

1 
10  days' sight. 
30     "         " 

July        2 
Sept.       4 
Aug.      12 
July      18 
August  14 
Sept.       7 

1,800 

800 
1,250 
2,000 
8,000 
5,500 

00 
00 
00 
00 
00 
00 

This  Book  is  to  be  examined  frequently,  in  order  to  learn  when 
the  Bills  become  mature,  that  they  may  be  paid. 

Bills  payable  are  those  Bills  for  which  the  owner  of  the  Books 
is  responsible,  when  due. 

Bills  Receivable  are  those  bills  for  which  other  persons  are  re- 
sponsible to  the  owner  of  the  Books,  when  due. 

Bills  are  usually  drawn  in  the  currency  of  the  country  where 
they  are  to  be  paid. 

When  notes  are  lodged  in  a  Bank  for  collection,  the  Bank  is 
made  Dr.  "  To  Bills  Receivable." 
26 


202 


DAY-BOOK — SET  IV.  ' 


Hartford,  November  1st.,  1837. 


Inventory  of  my  effects,  at  date  is, 

Cash  in  hand, . 

Merchandise  at  Invoice,      .     .     .     . 
H.  Chittenden  owes  me,  on  account. 


I  owe  sundry  persons,  on  notes,       .     .     . 
— -Ath", 

Sold  Lee  &  Butler,  for  cash. 

Merchandise,  per  Sales-Book,  page  1 ,  .     . 

6iA.,— 

Sold  Henry  Hudson,  on  account. 

Merchandise,  per  Sales-Book,  2,      .     .     . 

Qth. , 

Bought  of  Richmond  &  Coleman,  Mdse., 
on  my  note,  drawn  at  30  days,      .... 

1 1  th. , 

Sold  S.  Spencer,  &  Co.,  Merchandise, 
on  their  note,  drawn  at  60  days,  .... 

— llth., 

Sold  S.  W.  Goodridge,  Mdse.,  .  $4,000  00 
Received  in  payment,  his  note,  at  30  days,  for 
Cash  for  the  balance, 

20th. , 

Sold  Hudson  &  Putnam, 

Merchandise,  on  account, 

2 1  St., 

For  mutual  accommodation,  I  have  exchanged 
notes  with  Erastus  Smith,  Esq.,  each  drawn 
at  95  days, 


15,00000 
6,000 
800 


2,000 
2,000 


21,800 
1,500 

800 


68000 


00 


2,500 


4,000 


300 


1,00000 


00 
00 

00 


00 


00 


00 


DAY-BOOK SET  IV. 


203 


Hartford,  November  2Ath.,  1837. 


Shipped  by  the  Great  Western,  for  London, 
and  consigned  to  Hudson  &  Co.,  to  be  sold 
on  my  account,  1,000  bbls.  Flour,  at  $4  00 

Passed  my  note,  to  the  Marine  Insurance  Co., 
for  Premium  and  Policy,  on     $4,166  Q>Q 

2bth. , 


Bought  of  Nicholas  Harris,  for  cash. 
Merchandise,  per  Invoice-Book,  . 

28th., 


Bought  of  H.  B.  Chaffee,  Merchandise,  on  my 
note,  drawn  at  4  months,  per  Invoice-Book, 

30th. , 


Sold  Warburton  &  King,  for  cash,  at  2  per 
cent,  premium,  a  set  of  exchange,  drawn  at 
sight,  on  Hudson  &  Co.,  London,  for  675 
pounds  sterling,         

Premium, 


Bought  at  auction,  for  cash. 
Merchandise,  per  Invoice-Book, 

January  8th., 


Received  from  Hudson  &  Co.,  an  account 
sales  of  Flour,  consigned  to  them  by  the 
Great  Western.     Net  proceeds,  which  I 

place  to  their  debit,  is, 


Memorandum. 
Mdse.,  unsold  at  date,  is  valued  at  $7,000  00 


4,000 
166 


3,000 
60 


4,166 


2,000 


4,000 


66 


00 


00 


3,060 


875 


6,00000 


00 


00 


Note.— This  Day-Book  is  given  without  any  Journal  or  Ledger,  from  which  advanced  classes 
may  make  a  Journal,  (like  Journal  set  I.)  and  then  construct  the  Ledger ;  the  Trial-Balance,  and 
Balance-sheets  of  which  will  be  found  on  the  following  page. 


204 


TRIAL-BALANCE SET  IV. 


Dr. 


TRIAL-BALANCE— SET  IV. 


Cr. 


Stock,      .     .     . 
Cash,       .     .     . 
Merchandise,     . 
H.  Chittenden, 
i  Henry  Hudson, 
I  Bills  Receivable, 
Bills  Payable,   . 
Hudson  &  Putnam 
Adv'ture  to  London 
Hudson  &  Co., 
Profit  and  Loss,     . 


1,500 
20,860 
14,875 


8oo:oo 


680 
5,500 

300 
4,166 
6,000 


54,681  66 


21,800 

2,875 

12,280 


8,666 


66 


6,00000 

3,00000 

6000 


54,68166 


Dr. 


BALANCE-SHEET—SET  IV. 


Cr. 


Stock,'     .     .     . 
Cash,       .     .     . 
Merchandise,    . 
H.  Chittenden, 
Henry  Hudson, 
Bills  Receivable, 
Bills  Payable,    . 
Hudson  &  Putnam 
Hudson  &  Co., 


17,985 

7,000 

800 

680 

5,500 

300 


3,00000 


35,265  00 


26,598 


8,666 


34 


35,265  00 


66 


In  journalizing  the  foregoing  Day-Book,  remember  that 
The  Dr.  side  of  the  Cash- Account,  shows  your  receipts,  and 
The  Cr.  side  of  the  Cash- Account  shows  your  payments  of  cash. 
The  Dr.  side  of  the  Merchandise- Account,  shows  your  cost,  and 
The  Cr.  side  of  the  Merchandise-Account,  shows  your  sales  of 

Merchandise. 
The  Dr.  side  of  a  Person's- Account,  shows  what  he  owes  you,  and 
The  Cr.  side  of  a  Person's-Account,  shows  what  he  has  paid  you. 
The  Dr.  side  of  the  Bills  Receivable-Account;  shows  other  men's 

notes  received. 
The  Cr.  side  of  the  Bills  Receivable- Account,  shows  their  notes 

parted  with. 
The  Dr.  side  of  the  Bills  Payable-Account,  shows  your  notes 

which  you  redeem. 
The  Cr.  side  of  the  Bills  Payable-Account,  shows  the  notes  which 

you  issue. 


MANNER  OF  KEEPING   BANK-BOOKS. 

The  number  of  Books  kept  in  a  Bank  must  depend  much  upon 
the  amount  of  business  transacted.  The  following  are  the  Books 
commonly  used,  vi^  : 

1st.     The  Journal,  or  Day-Book,  kept  by  the  Cashier. 

The  committee  appointed  to  receive  the  first  or  all  the  install- 
ments, are  made  Dr.  to  the  same,  (say  $120,000,)  and  when  they 
pay  over  the  same  to  the  Board  of  Directors  or  President,  they 
are  credited  for  the  amount. 

When  the  Stock  is  subscribed  for ^ 

Sundries  are  Dr.  to  Stock  in  Co. 
The  Stock- Account  in  the  Ledger  must  be  credited  $120,000, 
and  (suppose  four  subscribers  investing  $30,000  each,  in  shares,) 
each  subscriber  is  made  Dr.  $30,000. 

When  the  Subscriptions ,  or  Installments  are  paid, 

Stock  in  Co.  is  Dr.  to  Sundries.  - 

Stock  in  Co.  is  Dr.  $120,000,  and  each  subscriber  is  credited 
$30,000.  Cash  is  then  made  Dr.  "  To  Sundries,"  $120,000,  and 
each  subscriber  is  credited  "  By  Cash,"  $30,000. 

2nd.  The  Expense-Book  gives  a  record  of  all  the  expenses,  as 
the  salaries  of  the  President,  Cashier,  clerks,  &c.  These  ex- 
penses are  entered  by  the  Cashier,  every  six  months,  when  a 
dividend  is  declared  by  the  Board  of  Directors.  The  account  is 
then  closed  by  Profit  and  Loss. 

3rd.  The  Deposite-Book,  in  which  there  is  one  column  for  the 
name  of  the  depositors,  one  for  the  amounts  deposited,  and  one  for 
each  of  the  Book-keepers.  Each  Book-keeper  has  the  names 
allotted  to  him  alphabetically,  and  he  removes  the  amounts  com- 
ing under  his  letters  into  his  columns,  to  prevent  confusion  in  post- 
ing.    As,  ^ 


806 


MANNER    OF   KEEPING    BANK-BOOKS. 


Deposite-Book. 


From  A  to  G.  From  G  to  O.  From  O  to  Z. 


July 

4 
6 
9 

Horatio  Aldeii, 

Samuel  Tudor, 

William  H.  Imlay,,     .... 

12,000 
16,000 
13,000 

41,000 

12,000 

13,000 

16,000 

4th.  The  Transfer-Book,  on  which  are  recorded  the  shares 
transferred  from  one  individual  to  another,  and  which  is  closed 
g^ome  days  before  the  dividend  is  declared,  during  which  time  no 
transfer  can  be  made. 


5th.  The  Statement-Book.  This  Book  the  Cashier  lays  be- 
fore the  Directors  twice  in  the  week,  (more  or  less,  as  the  cus- 
tom may  be,)  at  which  time  they  meet  to  discount  the  notes  offer- 
ed, and  to  ascertain  the  state  of  the  funds  from  this  Book.     As, 


Dr. 


Statement-Book. 


Cr. 


Specie  in  vaults,  .  , 
Bills  discounted,  .  , 
Notes  of  other  Banks, 
Banking  House,  .  . 
Expenses  paid    . 


47,000,00 
140,000  00 
30,000,00 
23,000  00 

2,681  68 


242,(181168 


Notes  in  circulation, 
Capital  Stock,  .  . 
Discounts  received. 
Surplus  fund,  .  . 
Deposites, .     .    .    . 


40,000  lOO 
120,00066 
8,000,00 
14,26090 
60. 


},42dl2 
2,681168 


6th.  The  Stock-Ledger,  on  which  every  stockholder's  ac- 
count is  opened  and  credited  for  his  shares  of  Stock,  and  debited 
for  his  transfers. 

When  notes  are  discounted  by  the  Bank,  debit  Bills  Receiva- 
ble ^'  To  Cash,"  for  the  net  amount  paid  by  the  Bank. 

When  the  Bills  are  paid  or  redeemed,  make  Cash  Dr.  To 
Bills  Receivable^  for  the  sum  paid  by  the  Bank  and  To  Dis- 
count for  the  amount  of  discount  on  the  note. 

When  th/s  Bank  loans  an  Individual  money,  on  Interest, 
The  individual  is  Dr.  "  To  Cash  ;"   and  when  he  pays  the 
original  sum  and  interest.  Cash  is  made  Dr.  to  the  Individual 
and  to  Interest. 

When  a  transfer  of  shares  is  made,  the  seller  is  made  Dr.  to 
the  buyer  for  the  amount  of  the  transfer. 

If  a  dissolution  of  the  company  take  place,  each  stockholder  is 
made  Dr.  "  To  Cash,"  for  the  amount  of  shares  refunded. 


MANNER  OP  KEEPING  BANK-BOOKS,  207 

If  any  stockholder  forfeits  his  shares  by  non-payment  of  the 
remainder,  his  account  must  be  closed  To  Profit  and  Loss,  and 
he  is  no  longer  considered  a  stockholder. 

When  the  Dividend  is  declared,  debit  Profit  and  Loss  "  To 
Sundries,"  for  the  amount  of  the  dividend,  and  credit  each  stock- 
holder for  his  share  of  it  "  By  Profit  and  Loss." 

When  the  Dividend  is  paid,  debit  each  stockholder  "  To 
Cash"  for  the  amount  of  his  share,  and  credit  Cash  "  By  Sun- 
dries," for  the  whole  dividend  paid. 

When  the  Cash-Account  is  balanced,  debit  the  Balance-Ac- 
count "  To  Cash,"  for  the  stockholder's  capital,  and  credit  the 
Cash- Account  "  By  Balance,"  for  the  same. 

When  the  Stockholder's- Accounts  are  balanced,  debit  each 
Stockholder's-Account  for  this  amount  of  shares,  "  To  Balance," 
and  credit  the  Balance-Account,  **  By  Sundries,"  for  the  whole 
capital. 


A  Bank  may  be, 

1st.  A  Bank  of  deposite,  like  the  Savings  Banks,  where  they 
receive  deposites  at  a  low  rate  of  interest,  and  lend  the  money  to 
individuals  on  real-estate  for  security,  without  issuing  any  paper 
currency* 

2nd.  A  Bank  of  deposite  and  discount,  where  moneys  are  re- 
ceived in  deposite,  usually  without  interest,  and  where  notes  are 
discounted  at  the  risk  of  the  Banking  Company, — The  deposites 
in  some  Banks  are  so  great,  that  with  a  small  capital,  the  Directors 
can  discount  all  the  good  paper  which  is  offered. 

3rd.  A  Bank  of  deposite,  discount,  and  circulation,  at  which 
moneys  are  received  in  deposite,  notes  discounted,  as  above  stated, 
and  which  issues  the  capital  invested,  or  more,  in  paper  cur- 
rency,— The  Company  are  permitted  by  the  acts  of  incorpora- 
tion, to  issue  a  given  amount  of  their  notes  on  a  given  amount  of 
bullion,  or  coins  of  gold  or  silver. 


208  BRITISH  STOCKS. 

Stocks  are  property  owned  by  government  or  individuals,  in 
moneyed  institutions,  roads,  bridges,  manufactories,  &c.  When 
the  shares  sell  above  their  original  cost,  they  are  said  to  be  above 
par,  and  when  they  sell  for  less,  they  are  said  to  be  below  par. 

The  British  Stocks  are,  the  three  per  cent,  consolidated  Annui- 
ties, produced  by  about  £400,000,000,  sterling,  formed  in  part  by 
the  consolidation  of  several  stocks,  bearing  interest  at  3  per  cent. 
When  the  term  consols,  is  used  indefinitely,  in  speaking  of  stocks, 
it  has  reference  to  these  annuities. 

Five  per  cent.  Irish  Annuities,  are  produced  by  about  £2,000, 
000  sterling,  formed  by  loans,  for  the  use  of  Ireland,  before  the 
Union. 

Stock  of  the  Bank  of  England,  amounts  to  £12,000,000,  ster- 
ling, from  which  the  company  have  accommodated  the  govern- 
ment with  various  loans,  and  carry  on  the  banking  business,  pur- 
chase bulb  on,  &c.  The  profits  of  the  company  are  £1,200,000 
sterling,  per  annimi. 

India  Stock  forms  the  trading  capital  of  the  East-India  Com- 
pany. The  stock  is  about  £6,000,000,  producing  a  dividend  of 
10  1-2  per  cent.,  per  annum. 

Bank  Long  Annuities;  so  called,  from  the  annual  payments 
being  from  their  origin,  made  payable  at  the  Bank,  and  from  their 
being  granted  for  a  longer  time  than  other  terminable  annuities. 
These  annuities  extend  to  the  beginning  of  the  year  1860,  and 
the  annual  payments  are  £1,100,000,  sterling. 

Exchequer  Bills,  are  issued  for  different  hundreds  or  thousands 
of  pounds,  and  bear  an  interest  21-2  per  cent,  per  diem.,  from  the 
day  of  date,  till  the  time  they  are  advertised  to  be  paid. 

Navy  Five  per  cent.  Annuities  ;  produced  from  about  £50,000, 
000  of  stock,  partly  formed  on  Navy  Bills,  converted  in  1784  into 
stock,  bearing  interest  at  5  per  cent. 

Omnium,  is  a  term  denoting  the  different  stocks  formed  by  a 
loan,  while  any  part  of  same  remains  unpaid. 

Scrip  is  a  term  given  to  each  of  the  receipts  of  the  Omnium 
when  they  are  sold  separately. 

Navy  Bills  are  merely  bills  of  exchange,  drawn  at  90  days 
date,  and  are  given  by  the  Commissioners  of  the  Navy  Depart- 
ment for  supplies,  and  the  interest  upon  these  amounts  to  3  per 
cent,  per  diem. 


PART  HI. 


REMARKS  ON  THE  FOLLOWING  TABLES, 


The  Interest  Tables,  on  the  three  following  pages,  show  the 
principal  at  the  head  of  the  page,  and  the  days  and  months  in  a 
column  in  the  centre  of  the  page.  If  you  would  find  the  interest 
on  $20  for  63  days,  look  for  the  dollars  at  the  head  of  the  page, 
under  which,  and  against  63,  in  the  day  coXuvsm,  you  find  21  cents. 
If  for  $500,  for  4  months,  you  find,  under  $500,  and  on  the  paral- 
lel with  4  months,  $10  to  be  the  interest  required. 

These  tables  are,  of  course,  limited  in  their  application,  occupy- 
ing, as  they  do,  only  three  pages ;  yet  so  full,  as  in  many  cases  to 
be  very  useful. 

The  author  would  respectfully  invite  those  interested  to  exam- 
ine his  Interest  Tables  at  six  per  cent.  They  will  be  found  as  full 
as  any  in  print;  so  constructed  as  to  bring  the  price  very  low; 
accompanied  with  a  new  method  of  equating  time,  and  much  mat- 
ter useful  to  the  business-man. 


TABLES  OF  INTEREST  AT 

SIX 

PER  CENT.        211~| 

#1 

$2!  i 

^3 

§4 

$5 

Days.       1 

16 

97 

f  8,  1  ^  9 

19  10 

1 

•  1 

2 
3 
4 
5 
6 
7 
8 
9 

•  1 

•  1 

!  2 

•  1 

10 
11 

12 
13 
14 

'.    2 
.  2 

.  2 
.  2 
.  2 

.  2 
.  2 
.  2 
.  2 
.  2 

.  2 
.  2 
.  2 
.  2 
.  3 

.  1 

15 

2 

.  2 

.  2 

.  2 

.  3 

1 

16 

2 

.  2 

.  2 

.  2 

.  3 

17 

2 

.  2 

.  2 

.  3 

.  3 

.  2 

18 

2 

.  2 

.  2 

.  3 

.  3 

.  2 

19 

2 

.  2 

.  3 

.  3 

.  3 

.  2 

20 

2 

.  2 

.  3 

.  3 

.  3 

.  2 

21 

2 

.  2 

.  3 

.  3 

.  4 

.  2 

22 

2 

.  3 

.  3 

.  3 

.  4 

.  2 

.  2 

23 

2 

.  3 

.  3 

.  3 

.  4 

.  2 

.  2 

24   . 

2 

.  3 

.  3 

.  4 

.  4 

.  2 

.  2 

25 

3 

.  3 

.  3 

.  4 

.  4 

.  2 

.  2 

26   . 

3 

.  3 

.  3 

.  4 

.  4 

.  2 

.  2 

27 

3 

.  3 

.  4 

.  4 

.  5 

.  2 

.2 

28 

3 

.  3 

.  4 

.  4 

.  5 

.  2 

.  2 

29   . 

3 

.  3 

.  4 

.  4 

.  5 

1 

2 

.  2 

.  3 

30 

3 

.  4 

.  4 

.  5 

.  5 

,   1 

2 

.  2 

.  3 

33 

3 

.  4 

.  4 

.  5 

.  6 

1 

2 

.  2 

.  3 

34   . 

3 

.  4 

.  5 

.  5 

.  6 

.  2 

3 

.  4 

.  5 

60 

6 

.  7 

.  8 

.  9 

.  10 

.  2 

3 

.  4 

.  5 

63   . 

6 

.  7 

.  8 

.9 

.11 

.  2 

3 

.  4 

.  5 

64 

6 

.  7 

.  9 

.  10 

.  11 

2 

.  3 

5 

.  6 

.  8 

90 

9 

.  11 

.  12 

.  14 

.  15 

2 

.  3 

5 

.  6 

.  8 

93   . 

9 

.  11 

.  12 

.  14 

.  16 

2 

.  3 

5 

.  6 

.  8 

•94 

Months. 

9 

.  11 

.  13 

.  14 

.  16 

2 

.  4 

6 

.  8 

.  10 

4   . 

12 

.  14 

.  16 

.  18 

.  20 

3 

.  5 

.  8 

.  10 

.  13 

5   . 

15 

.  18 

.  20 

.  23 

.  25 

3 

.  6 

.  9 

.  12 

.  15 

6   . 

18 

.  21 

.  24 

.  27 

.  30 

4 

.  7  . 

11 

.  14 

.  18 

7   . 

21 

.  25 

.  28 

.  32 

.  35 

4 

.  8  . 

12 

.  16 

.  20 

8   . 

24 

.28 

.  32 

.  36 

.  40 

5 

.  9  . 

14 

.  18 

.  23 

9   . 

27 

.  32 

.  36 

.  41 

.  45 

5 

.  10  . 

15 

.  20 

.  25 

10   . 

30 

.  35 

.  40 

.  45 

.  50 

6 

.  11  . 

17 

.22 

.  28 

11   . 

33 

.  39 

.  44 

.  5p 

.  55 

6 

.  12  . 

18 

.  24 

.  30 

12   . 

36 

.  42 

.  48 

.  54 

.  60 

12 

.  24  . 

36 

.  48 

.  60 

24   . 

72 

.  84 

.  96 

1,08 

1,20 

18 

.  36  . 

54 

.  72 

.  90 

36   1 

,08 

1,26 

1,44 

1,62 

1,80 

'  24 

.  48  . 

72 

.  96 

1,20 

48   1 

,44 

1,68 

1,92 

2,16 

2,40 

212 

TABLES  OF  INTEREST  AT  SIX  PER  CENT.             | 

$20 

1$  30 

$  40 

$  50 

$   60 

Days. 

§  70 

$  80  $  90| 

100| 

200 

1 

.  1 

.  1 

.  1 

~T~ 

.  1 

.  1 

.  2 

.  2 

.  3 

1 

.  1 

.  1 

.  2 

.  2 

2 

.  2 

.  3 

.  3 

.  3 

.  7 

1 

.  2 

.  2 

.  3 

.  3 

3 

.  4 

.  4 

.  5 

.  5 

.  10 

1 

.  2 

.  3 

.  3 

.  4 

4 

.  5 

.  5 

.  6 

.  7 

.  13 

2 

.  3 

.  3 

.  4 

.  5 

5 

.  6 

.  7 

.  8 

.  8 

.  17 

2 

.  3 

.  4 

.  5 

.  6 

6 

.  7 

.  8 

.  9 

'  .   10 

.  20 

2 

.  4 

.  5 

.  6 

.  7 

7 

.  8 

.  9 

.  11 

.  12 

.  23 

3 

.  4 

.  5 

.  7 

.  8 

8 

.  9 

.  11 

.  12 

.  13 

.  27 

3 

.  5 

.  6 

.  8 

.  9 

9 

.  11 

.  12 

.  14 

.  15 

.  30 

3 

.  5 

.  7 

.  8 

.  10 

10 

.  12 

.  13 

.  15 

.  17 

.  33 

4 

.  6 

.  7 

.  9 

.  11 

11 

.  13 

.  15 

.  17 

.  18 

.  37 

4 

.  6 

.  8 

.  10 

.  12 

12 

.  14 

.  16 

.  18 

.  20 

.  40 

4 

.  7 

.  9 

.  11 

.  13 

13 

.  15 

.  17 

.  20 

.  22 

.  43 

5 

.  7 

.  9 

.  12 

.  14 

14 

.  16 

.  19 

.  21 

.  23 

.  47 

5 

.  8 

.  10 

.  13 

.  15 

15 

.  18 

.  20 

.  23 

.  25 

.  50 

5 

.  8 

.  11 

.  13 

.  16 

16 

.  19 

.  21 

.  24 

.  27 

.  53 

6 

.  9 

.  11 

.  14 

.  17 

17 

.  20 

.  23 

.  26 

.  28 

.  57 

6 

.  9 

.  12 

.  15 

.  18 

18 

.  21 

.  24 

.  27 

.  30 

.  60 

6 

.  10 

.  13 

.  16 

.  19 

19 

.  22 

.  25 

.  29 

.  32 

.  63 

7 

.  10 

.  13 

.  17 

.  20 

20 

.  23 

.  27 

.  30 

.  33 

.  67 

7 

.  11 

.  14 

.  18 

.  21 

21 

.  25 

.  28 

.  32 

.  35 

.  70 

7 

.  11 

.  15 

.  18 

.  22 

22 

.  26 

.  29 

.  33 

.  37 

.  73 

8 

.  12 

.  15 

.  19 

.  23 

23 

.  27 

.  31 

.  35 

.  38 

.  77 

8 

.  12 

.  16 

.  20 

.  24 

24 

.  28 

.  32 

.  36 

.  40 

.  80 

8 

.  13 

.  17 

.  21 

.  25 

25 

.  29 

.  33 

.  38 

.  42 

.  83 

9 

.  13 

.  17 

.  22 

.  26 

26 

.  30 

.  35 

.  39 

.  43 

.  87 

9 

.  14 

.  18 

.  23 

.  27 

27 

.  32 

.  36 

.  41 

.  45 

.  90 

9 

.  14 

.  19 

.  23 

.  28 

28 

.  33 

.  37 

.  42 

.  47 

.  93 

10 

.  15 

.  19 

.  24 

.  29 

29 

.  34 

.  39 

.  44 

.  48 

.  97 

10 

.  15 

.  2C 

.  25 

.  30 

30 

.  35 

.  40 

.  45 

.  50 

1,00 

11 

.  17 

.  22 

.  28 

.  33 

33 

.  39 

.  44 

.  50 

.  55 

1,10 

11 

.  17 

.  23 

.  28 

.  34 

34 

.  40 

.  45 

.  51 

.  57 

1,13 

20 

.  30 

..  40 

.  50 

.60 

60 

.  70 

.  80 

.  90 

1,00 

2,00 

21 

.  32 

.  42 

.  53 

.  63 

63 

.  74 

.  84 

.  95 

1,05 

2,10 

21 

.  32 

.43 

.  53 

•  64 

64 

.  75 

.  85 

.  96 

1,07 

2,13 

30 

.  45 

.  60 

.  75 

•  90 

90 

1,05 

1,20 

1,35 

1,50 

3,00 

31 

.  47 

.  62 

.  78 

•  93 

93 

1,09 

1,24 

1,40 

1,55 

3,10 

31 

.  47 

.  63 

.  78 

•  94 

94 

Months. 

1,10 

1,25 

1,41 

1,57 

3,13 

40 

.  60 

.  80 

1,00 

1,20 

4 

1,40 

1,60 

1,80 

2,00 

4,00 

50 

.  75 

1,00 

1,25 

1,50 

5 

1,75 

2,00 

2,25 

2,50 

5,00 

60 

.  90 

1,20 

1,50 

1,80 

6 

2,10 

2,40 

2,70 

3,00 

6,00 

70 

1,05 

1,40 

1,75 

2,10 

7 

2,45 

2,80 

3,15 

3,50 

7,00 

80 

1,20 

1,60 

2,00 

2,40 

8 

2,80 

3,20 

3,60 

4,00 

8,00 

90 

1,35 

1,80 

2,25 

2,70 

9 

3,15 

3,60 

4,05 

4,50 

9,00 

1,00 

1,50 

2,00 

2,50 

3,00 

10 

3,50 

4,00 

4,50 

5,00 

10,00 

1,10 

1,65 

2,20 

2,75 

3,30 

11 

3,85 

4,40 

4,95 

5,50 

11,00 

1,20 

1,80 

2,40 

3,00 

3,60 

12 

4,20 

4,80 

5,40 

6,00 

12,00 

2,40 

3,60 

4,80 

6,00 

7,20 

24 

8,40 

9,60 

10,80 

12,00 

24,00 

3,60 

5,40 

7,20 

9,00 

10,80 

36 

12,60 

14,40 

16,20 

18,00 

36,00 

4,80 

7,20 

9,60 

12,00 

14,40 

48 

16,80 

19,20 

21,60 

24,00i|48,00| 

TABLES  OF  INTEREST  AT  SIX  PER  CENT. 

213 

$  300  1$  400||$  500 

#600 

Days. 

$700 

$§00 

$900 

$xooo 

5 

.   7 

.   8 

.  10 

1 

.  12 

.  13 

,  15 

.  17 

10 

.  13 

.  17 

.  20 

2 

23 

.  27 

.  30 

.  33 

15 

.  20 

.  25 

.  30 

3 

.  35 

.  40 

.  45 

.  50 

20 

.  27 

.  33 

.  40 

4 

.  47 

.  53 

.  60 

.  67 

25 

.  33 

.  42 

.  50 

5 

.  58 

.  67 

.  75 

.  83 

30 

.  40 

.  50 

.  60 

6 

.  70 

.  80 

.  90 

1,00 

35 

.  47 

.  58 

.  70 

7 

.  82 

.  93 

1,05 

1,17 

40 

.  53 

.  67 

.  80 

8 

.  93 

1,07 

1,20 

1,33 

45 

.  60 

.  75 

.  90 

9 

1,05 

1,20 

1,35 

1,50 

50 

.  67 

.  83 

1,00 

10 

1,17 

1,33 

1,50 

1,67 

55 

.  73 

.  92 

1,10 

11 

1,28 

1,47 

1,65 

1,83 

60 

.  80 

1,00 

1,20 

12 

1,40 

1,60 

1,80 

2,00 

65 

.  87 

1,08 

1,30 

13 

1,52 

1,73 

1,95 

2,17 

70 

.  93 

1,17 

1,40 

14 

1,63 

1,87 

2,10 

2,33 

75 

1,00 

1,25 

1,50 

15 

1,75 

2,00 

2,25 

2,50 

80 

1,07 

1,33 

1,60 

16 

1,87 

2,13 

2,40 

2,67 

85 

1,13 

1,42 

1,70 

17 

1,98 

2,27 

2,55 

2,83 

90 

1,20 

1,50 

1,80 

18 

2,10 

2,40 

2,70 

3.00 

95 

1,27 

1,58 

1,90 

19 

2,22 

2,53 

2,85 

3,17 

1,00 

1,33 

1,67 

2,00 

20 

2,33 

2,67 

3,00 

3,33 

1,05 

1,40 

1,75 

2,10 

21 

2,45 

2,80 

3,15 

3,50 

1,10 

1,47 

1,83 

2,20 

22 

2,57 

2,93 

3,30 

3,67 

1,15 

1,53 

1,92 

2,30 

23 

2,68 

3,07 

3,45 

3,83 

1,20 
1,25 

1,60 

1,07 

2,00 

2,08 

2,40 

24 

2,80 

Q,00 

3,20 

3,33 

3,60 

4,00 
4,ir 

•^,00 

20 

1,30 

1,73 

2,17 

2,60 

26 

3,03 

3,47 

3,90 

4,33 

1,35 

1,80 

2,25 

2,70 

27 

3,15 

3,60 

4,05 

4,50 

1,40 

1,87 

2,33 

2,80 

28 

3,27 

3,73 

4,20 

4,67 

1,45 

1,93 

2,42 

2,90 

29 

3,38 

3,87 

4,35 

4,83 

1,50 

2,00 

2,50 

3,00 

30 

3,50 

4,00 

4,50 

5,00 

1,65 

2,20 

2,75 

3,30 

33 

3,85 

4,40 

4,95 

5,50 

1,70 

2,27 

2,83 

3,40 

34 

3,97 

4,53 

5,10 

5,67 

3,00 

4,00j 

5,00 

6,00 

60 

7,00 

8,00 

9,00 

10,00 

3,15 

4,20 

5,25 

6,30 

63 

7,35 

8,40 

9,45 

10,50 

3,20 

4,27 

5,33 

6,40 

64 

7,47 

8,53 

9,60 

10,67 

4,50 

6,00 

7,50 

9,00 

90 

10,50 

12,00 

13,50 

15,00 

4,65 

6,20 

7,75 

9,30 

93 

10,85 

12,40 

13,95 

15,50 

4,70 

6,27 

7,83 

9,40 

94 

Months. 

4 

10,97 

12,53 

14,10 

15,67 

6,00 

8,00 

10,00 

12,00 

14,00 

16,00 

18,00 

20,00 

7,50 

10,00 

12,50 

15,00 

5 

17,50 

20,00 

22,50 

25,00 

9,00 

12,00 

15,00 

18,00 

6 

21,00 

24,00 

27,00 

30,00 

10,50 

14,00 

17,50 

21,00 

7 

24,50 

28,00 

31,50 

35,00 

12,00 

16,00 

20,00 

24,00 

8 

28,00 

32,00 

36,00 

40,00 

13,50, 

18,00 

22,50 

27,00 

9 

31,50 

36,00 

40,50 

45,00 

15,00 

20,00 

25,00 

30,00 

10 

35,00 

40,00 

45,00 

50,00 

16,50 

22,00i 

27,50 

33,00 

11 

38,50 

44,00 

49,50 

55,00 

18,00 

24,00| 

30,00 

36,00 

12 

42,00 

48,00 

54,00 

60,00 

36,oo; 

48,00| 

60,00 

72,00 

24 

84,00 

96,00 

108,00 

120,00 

54,00, 

72,00 

90,00 

108,00 

36 

126,00 

144,00 

162,00 

180,00 

72,00 

96,00! 

120,00 

144,00 

48 

168,00 

192,00 

216,00 

240,00 

VALUE    OF   GOLD   COINS, 

According  to  the  Laws  of  May  and  June,  1834. 


Names  of  Coins. 


UNITED  STATES 
Eagle,  coined  before 

July  31,  1834. 
Shares  in  proportion 
FOREIGN  GOLD. 
AUSTRIAN  DOMIN 
IONS. 
Souverein, .    .    . 
Double  Ducat,    . 
Hungarian  Ducat, 
BAVARIA. 
Carolin,      .    .    . 
Max  d'or,  or  Maxi' 

milian,    .    .    . 
Ducat,   .... 
DERNE. 
Ducat,    double     in 

proportion, .    . 
Pistole, .... 
BRAZIL. 
Jobannes,  | in  pro 

portion,  .  .  . 
Dobraon,  .  .  . 
Dobra,  .... 
Moidore  i  in  propor 

tion,  .... 
Crusade,    .     •     . 
BRUNSWICK. 
Pistole,    double    in 

proportion, .    . 
Ducat,  .... 
COLOGNE. 

Ducat,  .... 
COLOMBIA. 

Doubloon,  .  .  . 
DENMARK, 
Ducat,  Current,  . 
Ducat,  Specie,  . 
Christian  d'or,  . 
EAST-INDIA. 
Rupee,    Bombay 

1818,  .    . 
Rupee,    Madras, 
1818,  .... 
Pagoda,  Star, . 
ENGLAND. 
Guinea,  ^  in  propor- 
tion,  .    .    .    .     , 
Sovereign,  do. 
Seven  Shilling  piece, 
FRANCE. 
Double  Louis,  coin 

ed  before  1786. 
Louia,  do,  .  .  . 
Double  Louis,  coin 

ed  since  1786, 
Louis,  do.  .     .     . 
Double  Napoleon,  or 

40  francs,    .     . 

Napoleon,  or  20  do 

Same  as   the    new 

Louis  Guinea, 


$ct.tn 


10 


10 

3066 


$  ct.  tn. 


3  37 

4  58 


32  70  6 
30   1 


2  26 


969 

4:84 


465 


Names  of  Coins. 


FRANKFORT  ON 

THE  MAIN. 

Ducat,   .... 
GENEVA. 

Pistole,  old,     .    . 

Pistole,  new, .    . 
HAMBURG. 

Ducat,  double  in  pro- 
portion, .    .    . 
GENOA 

Sequin, .... 
HANOVER..     .     . 

Double  George  d'or 
single  in  propor 
tion,   .... 

Ducat,   .... 

Gold  Florin,  double 
in  proportion, 
HOLLAND. 

Double  Ryder,    , 

Rvdpr,  .     , 

Ducat,    .... 

Ten  Guilder  piece,  5 
do.  in  proportion 
MALTA. 

Double  Louis, 

Louis,    .     .     .     ; 

Demi  I^uis,    .    . 
MEXICO. 

Doubloons,     shares 
in  proportion,  .     . 
MILAN. 

Sequin, 

Doppia,  or  Pistole,  . 

Forty  Livre  pieces. 


piece, 


NAPLES. 

Six     Ducat 
1783,  .     . 

Two  Ducats,  or  Se- 
quin, 1762,  .     .     . 

Three  do.  or  Oiicet- 
ta,  1818,  .     .     .     . 
NETHERLANDS. 

Gold  Lion,  or  four- 
teen Florin  piece. 

Ten    Florin    piece, 

1820, 

PARMA. 

Quadruple  Pistole, 
double  in  propor- 
tion,    

Pistole  or  Doppia, 
1787, 

Pistole  or  Doppia, 
1796,  .     ;    .     .     . 

Maria  Theresa,  1818, 
PIEDMONT. 

Pistole  coined  since 
1785,  half  in  pro- 
portion, .    .    .    . 

Sequin,  J  in  propor'n 


dt.gr. 


4    3i 


5  20 


il 


•  Ct.l 


its 

$  ct.  m. 


227  9 

I 

3  98   5 
3  44   4 


227 

30 


16  62 


5I4I 

2j29 


TALUE  OF  GOLD  COINS. 


215 


Names  of  Coins. 


Carlino,  coined  since 
1785,  half  in  pro- 
portion, .    -    .    . 

Piece  of  20  francs, 
called  Marengo,  . 
POLAND. 

Ducat, 

PORTUGAL. 

Dobraou,    .     .     . 

Dobra, 

Johannes,  .... 

Moidore  ^  in  pro- 
portion, .     .     .     . 

Piece  of  16  TestOons 
or  1600  Rees,   .     . 

Old  Crusado  of  400 
Rees, 

New  Crusado  of  480 
Rees,  .    .    .    -    . 

Milree,    coined     in 

1755,  

PRUSSIA. 

Ducat,  1748,  .  .  . 
do.     1787.   .     .     . 

Frederick,  double 
1769,- 

Frederick    double 
1800 

Frederick,  single, 
1778, 

Frederick,  single,    . 

1800, 

ROME. 

Sequin,  coined  since 
1760, 

Scudo  of  Republic,  . 
RUSSIA. 

Ducat,  1796,  .  .  . 
do.     1763,   .     .     . 

Gold  Ruble,  1756.  . 
do.  do.  1799.  . 
do.  Polten,  1777,  . 

Imperial,        ISOl,   . 

Half  do.         1801,    . 
do.  do.  1818,   . 

SARDINIA. 

Carlino  i  in  propor- 
ti.',n, 


dt.gr. 


-1 

n 

$ct.m. 


\\ 

25  631  2 


334 
213 


30i06 
22 
16 


7  47 


33 
7  34 
3  67 
3  68 


lOl  7J  1  888    I 


$  ct-  m. 


3270 


2  27 
226 


7f 

7195 


35 

7  82 
391 
3'93 


9i47   2 


Names  of  Coins. 


1784, 
1797, 
1754, 

1784, 

1751, 
1758, 

1772, 


SAXONY. 

Ducat, 

do. 
Augustus, 
do. 
SICILY. 
I     Ounce, 

Double  do. 
SPAIN. 
Doubloons, 
double  and  single, 
and  shares  in  pro- 
portion, .... 
Doubloon,  .... 

Pistole,  

Coronilla,  Gold  Dol- 
lar or  Vintern,1801, 
SWEDEN. 

Ducat 

SWITZERLAND. 
Pistole  of  the  Helve- 
tic Republic,  1800, 
TREVES. 

Ducat, 

TURKEY. 
Sequin  FonducU,  of 
Constantinople, 
1773,  .... 
Sequin  do.  1789,  . 
Half  Misseir,  1818, 
Sequin  FonducU, 
Yeermeeblekblek, 
TUSCANY. 
Zechino  or  Sequin, 
llusponeof  theking 
dum  of  Etruria, 
VENICE. 
Zechino  or  Sequin 
shares  in  propor- 
tion,  .    .    .    .    , 
WIRTEMBEllG. 
Carolin,      .    .    .    . 

Ducat, 

ZURICH. 
Ducat,  double    and 
half  in  proportion, 


dt.gr. 


^m 


8i 
9 

8^ 

3 

5 

5? 

2   5i 
18i 


II 


$  ct.m.\\$  ct.  m. 


35   1 


92 
9 

27 
2 

174 
1 

49 
1,71 

284 

216 
650 


2,  6    j  216 


JL 


4  59 
9 


4  56 
226 


186  8 

1 

52   1 

8 


8 
53  5 


The  American  Eagle,  coined  since  1834,  is  valued  at  $10,00,  and  shares  in  proportion.  The 
weight  of  those  coined  since  the  above  mentioned  date  is  10  dwt.  18  gr.  The  design  in  diminish- 
ing the  weight  is  to  keep  the  gold  in  the  country. 

The  Sovereign  of  England,  was,  when  first  coined,  equal  to  £1,  sterling,  $4,44,4,  which  is 
now  worth  $4,85.  All  gold  coins  having  the  same  weight  and  fineness  as  formerly,  have  in- 
creased in  their  value,  in  about  the  same  proportion  as  the  Sovereign  and  Eagle. 

Imaginary  money  is  used  to  express  such  sums  as  have  no  coins  equal  to  them  in  value;— 
such,  may  be  considered  the  Pound  sterling.  When  we  speak  of  gold  lor  gold,  we  say  the 
Pound  is  worth  $4,85;  but  the  value  of  the  Pound  among  merchants  has  not  nominally  changed. 

In  selling  bills  on  England,  the  Pound  is  considered  $4,44,  and  if  bills  are  sold  at  8  per  cent. 
premium,  the  8  per  cent,  is  computed  on  the  last  named  amount,  and  not  on  $4,85.  A  bill  on  Lon- 
don for  £675,  at  eight  per  cent.,  would  be  sold  for  $3,240,00 ;  as, 

£ 

675 

40 

9)27000 
$3000 
8 

24000 
3000 
$3,246,00 

To  bring  Pounds  into  Dollars,  multiply  by  40,  and  divide  the  product  by  9. 


A   TABLE, 

Showing  the  number  of  days  from  any  day  in  one  month,  to  the 
same  day  in  another. 


Days  tn  a  month.  SI      28      31      30     31      30     31       31      30      31      30     31  | 

I 

Tomr 

1 

If  1 1 1  r  1 1 1  1 1  1 

"" 

n 

^j ^1-^^^ 

•        •        • 

1 

January.  . 

366 

31 

59 

90 

120 

151 

181 

212 

243 

273 

304 

334 

2 

February. . 

334 

365 

28 

59 

89 

120 

150 

181 

212 

242 

273 

303 

3 

March.  .    . 

30G 

337 

365 

31 

61 

92 

122 

153 

184 

214 

245 

275 

4 

April.     .   . 

275 

306 

334 

365 

30 

61 

91 

122 

153 

183 

214 

244 

5 

May.   .    .  . 

245 

276 

304 

335 

365 

31 

61 

92 

123 

153 

184 

214 

6 

June..    .   . 

214 

245 

273 

304 

334 

365 

30 

61 

92 

122 

153 

183 

7 

July. .    .    . 

184 

215 

243 

274 

304 

335 

365 

31 

62 

92 

123 

153 

8 

August     . 

153 

184 

212 

243 

273 

304 

334 

365 

31 

61 

92 

122 

9 

September. 

122 

153 

181 

212 

242 

273 

303 

334 

365 

30 

61 

91 

10 

October..   . 

92 

133 

151 

182 

212 

243 

273 

304 

335 

365 

31 

61 

11 

November. . 

61 

92 

120 

151 

181 

^12 

242 

273 

304 

334 

365 

30 

12 

December. . 

31 

62 

90 

121 

151 

182 

212 

243 

274 

304 

335 

365 

Thirty  days  hath  September, 

(Save  February,  alone,) 

April,  June,  and  November; 

Which  hath  but  twenty-eight, 

All  the  rest  have  thirty-one. 

Except  *Leap-Year  it  hath  twenty-nine. 

♦When  the  years  can  be  divided  by  4  without  a  remainder,  it  is  Leap-Year,  and  has  366 days. 

1st.  To  find  the  number  of  days  from  the  1st.  of  January  to  the  1st.  of  July :— Follow  the  hori- 

zontal line  on  which  January  is  printed,  till  you  come  to  July,  and  you  find  181,  which  are  the 

number  of  days  intervening  those  dates. 

2nd.  To  find  the  number  of  days  from  the  1st.  of  May  to  the  1st.  of  October :— Follow  the  hori- 

zontal line  on  which  May  is  printed,  till  you  come  under  October,  and  you  will  find  153  days  to  be 

the  intervening  time. 

3rd.  So  if  you  would  find  the  number  of  days  between  the  9th.  of  May,  and  the  9th.  of  October, 

you  would  pursue  the  same  course  as  in  case  2nd. ;  for  it  is  evident,  that  there  are  the  same  num- 

ber of  days  from  the  9th.,  or  anv  other  day  in  one  month  to  the  same  day  in  another  month,  as 

there  are  from  the  1st.  to  the  1st.  of  the  same  months. 

4th.  To  find  the  number  of  days  from  the  1st.  of  March  to  the  12th.  of  November :— From  the 

Ist.  of  March  to  the  1st.  of  November,  will  be  seen,  are  245  days,  to  which  add  the  12  days,  and 
you  have  257  days. 
Thus,  you  will  always  in  such  cases,  find  the  time  between  the  given  time  of  one  month  to  the 

same  day  in  another  month,  and  add  or  subtract  as  may  be  most  convenient. 

EQUATING  TIME  OF  PAYMENTS. 


What  is  meant  by  equating  payments  1 

It  is  to  find  the  time  at  which  several  debts  due  at  different  periods  of  time,  may 
be  paid  in  one  payment,  so  that  the  interest  on  the  sums  ^overdue,  may  cancel  the 
discount  on  the  sums  fnot  yet  due ;  that  is,  so  that  neither  party  shall  lose  any  in- 
terest. 

Is  it  common  that  the  equated  or  averaged  time  of  payment  is  required  to  be  found 
in  actual  business  1 

Such  cases  are  constantly  occurring  in  Banks,  and  all  Mercantile  establishments 
of  any  importance. 

In  Banks,  time  is  equated  principally  on  notes,  when  an  individual  would  give 
one  note  for  several  due  at  different  times,  or  redeem  several  such  notes  for  cash. 

In  the  Counting-House,  time  is  equated  on  Notes,  Accounts,  Accoimts-Current,  &c. 

E  X  A  M  P  L  E    I . 

I  bought  goods  of  Olmsted  &  Thacher,  on  account,  as  follows :  What  is  the 
equated  time  of  payment  1 

July    4th.,  ^50  25 

"      18th.,  25  60xl4days=    358  40 

Aug.  26th.,  75  00X53     "    ==3,975  00 

Sept.  4th.,  60  30  X  62     "    =3,738  60 

Oct.     9th.,  40  13X97     "    =3,892  61 


Amount  of  the  debt,   251  28  251)11,964  61(47,t  nearly  48  days. 

RULE  I. 

1st.  Multiply  each  sum  (excepting  the  first  sum,)  into  the  time  intervening  be- 
tween its  and  the  earliest  date,  and  add  the  products  together. 

2nd.  Divide  the  sum  of  the  products  arising  from  the  foregoing  multiplication,  by 
the  whole  debt. 

The  quotient  arising  from  the  above  division,  being  days  or  months,  (as  the  case 
may  be  stated,  in  days  or  months,)  added  to  the  earliest  date  given,  shows  the  equa- 
ted time  of  payment. 

EXPLANATION  OF  EXAMPLE  I. 

48  days  from  July  4th.,  gives  the  equated  time  Aug.  21st. 

Day3. 
From  July  4th.  to  July  18th.,  are  14x25  60,  as  above. 
From  July  4th.  to  Aug.  26th.,  are  53  X  75  00,  as  above. 
From  July  4th.  to  Sept.  4th.,  are  62x60  30,  as  above. 
From  July  4th.  to  Oct.    9th.,  are  97x40  13,  as  above. 
It  will  be  seen  that  we  count  from  the  first  date,  continually  finding  the  days  in- 
tervening between  July  4th.  and  each  successive  daXe,  forward^  making  no  use  of  the 
first  sum  except  adding  it  with  the  other  amounts  for  a  divisor. 

*  "  Overdue.'"  The  sums  overdue  are  those  which  (if  not  for  the  agreement  of  the  parties  to 
•quate  the  payment,)  would  have  been  paid  before  the  equated  time. 

t "  Not  yet  Due."  The  sums  not  yet  due,  are  those  which  (if  not  for  the  agreement  of  the  parties 
to  equate  the  payment,)  would  have  been  paid  after  the  equated  time, 

t  If  more  than  half  a  day  we  call  it  a  whole  day ;  but  if  the  flraction  is  less  than  half,  we  call  it 
mought. 

2S  T 


218  EQUATING  TIME  OF  PAYMENTS. 

PROOF  OF  EXAMPLE  I. 

Days. 
From  July   4th.  till  Aug.  21st.,  (or  medium  time)48  X  50  25^=2,412  00  )  «  ^j.^  .^ 
From  July  18th.  till  Aug.  21st.,  (or  medium  time)  34  X  25  69==    870  40  S    ' 
From  Aug.  21st.  (or  medium  time)  till  Aug.  26th.,    5x7500=    375  00  ^ 
From  Aug.  21st.  (or  medium  time)  till  Sept.  4th.,  14  x  60  30==    844  20  J- 3,185  57 
From  Aug.  21st.  (or  medium  time)  till  Oct.    9th.,  49x40  13  =  1,966  37  ) 

RULE  TO  PROVE  EQUATIONS. 

1st.  Find  the  number  of  days  intervening  between  the  first  date  and  the  equated 
time,  and  multiply  that  number  of  days  into  the  sum  frcm  which  you  counted. 
Proceed  thus  with  each  sum  whose  date  is  earlier  than  the  equated  time,  and  add 
their  products  together. 

2nd.  Find  the  number  of  days  intervening  between  the  equated  time  and  the 
first  date  after  that  time,  and  multiply  that  number  of  days  into  the  sum  to  which 
you  counted.  Proceed  thus  with  each  sum  whose  date  is  later  than  the  time  of 
equation,  and  add  the  products  together.  The  sum  of  the  products  before  the  equa- 
ted time  must  be  equal  the  sum  of  the  products  after  the  equated  time. 

"When  there  is  a  fraction  arising  from  the  division  above,  there  will  necessarily  be 
one  in  the  sum  of  the  products.     See  last  case. 

As  every  equation  must  be  proved  in  the  same  manner  as  the  last,  I  shall  not  be 
80  minute  in  explaining  the  remaining  cases.  It  is  recommended  to  every  person 
who  works  equation  of  payments,  not  to  call  them  right  till  proved  so. 

EXAMPLE    II  . 

Bought  of  S.  Spencer  &  Co.,  goods,  as  follows,  viz  :  and  we  wish  to  pay  the  same 
on  the  1st.  July.     Which  party  must  allow  interest  1 

June  12th.,  due  S700    X    0=  0000 

"     30th.,    "      500   X18=  9000 

July  15th.,    "      800   X  33=26400 

«     28th.,    "      600   X  46  =  27600 

Aug.    8th.,    "      400   X  67=22800 


3,000    3,000)85800(28,  3-5  days. 
^6000  ^ 


25800 
24000 


600)i!22_3 
''3000""^ 
28  3-5  days  addel  to  June  12th.,  gives  the  equated  time,  July,  10  3-5      S.  Spen- 
cer &  Co.  must  allow  us  interest  on  $3,000,  for  10  3-5  days. 

PROOF  OF  EXAMPLE  II. 

Days. 
From  July  10  3-5,  till  June  12th.,  or  equated  time,  are  28  3-5  X  $700=20020  )  ^.  „^ 
From  July  10  3-5,  till  June  30th.,  or  equated  time,  are  10  3-5  X    800=  5300  (  '^°'"''^" 
From  July  10  3-5,  till  July  15th.,  or  equated  time,  are    4  2-5  X    800=  3520  \ 
From  July  10  3-5,  till  July  28th.,  or  equated  time,  are    7  2-5  X    600=  10440  V  25,320 
FromJulyl0  3-5,tillAug.   8th.,  or  equated  time,  are  28  2-5  X    400=11360) 

EXAI\IPLE    III. 

We  bought  of  A.  M.  Collins  &  Sons,  goods  on  account,  as  follows,  viz  :     What  is 
the  equated  time  for  payment  1 

May  4th.,  $800,  due  in  60  days. 
May  16th.,  400,  due  in  20  days. 
June  8th.,  700,  due  in  120  days. 
June  24th.,    600,  due  in    30  days. 


EQUATING  TIME  OF  PAYMENTS.  219 

This  must  first  be  transposed  before  it  can  be  equated,  as. 
The  400  would  become  due  June  5th.,    $400  X     0= 
The  800  would  become  due  July  3rd.,      800  X   28=22400 
The  600  would  become  due  July  24th.,     600  X   49 =29400 
The  700  would  become  due  Oct.  6th.,      700  X  123=86100 


$2,500  )137900(55  4-25  days. 

^2500 
12900 
12500 


100)J00(=^4^ 
2500 

The  quotient,  55,  4-25  days,  added  to  June  5th.,  brings  the  equated  time  forward 
to  July  30  4-25  days. 

PROOF  OF  EXAMPLE  III. 

Days. 
From  June  5th.,  to  equated  time,  July  30  4-25,  are  55  4-25  X  $400=22064  ^ 
From  July  3rd.,  to  equated  time,  July  30  4-25,  are  27  4-25  X    800=21728  V  47488 
From  July  24th.,  to  equated  time,  July  30  4-25,  are    6  4-25  X    600=  3696  ) 
From  equated  time  on  July  30  21-25,  till  Oct.  6th,  are  67,  21-25  X  $700=47488. 

EXAMPLE     IV. 

What  is  the  equated  time  for  paying  the  following  bill  1 

New-York,  April  Gth.^  1389. 
H.  A.  Chittenden, 

Bought  of  Carrington  &,  Lee, 
Jan.   2nd.,  200  yds.  black  cloth,  at  $3,00,  at  6  months,    $600 
"    26th.,  200    "    linen,  "       ,75,  »  4       "  160 

Feb.   9th.,  160    "    carpeting,      "     1,00,  now  due,  160 

Mar.  10th.,   60    "    black  silk,      "       ,80,  at  3  months,         48 
April  4th.,    40    "    carpeting,      "     1,25,  now  due,  50 


•   $1,008 
Note.    It  will  be  necessary  to  transpose  the  above  sums  and  dates,  before  the  same  can  be  equa- 
ted ;  that  is,  carry  each  date  forward  to  the  time  that  the  sum  is  due. 

Feb.  9th.,  $160 

April  4th.,  50  X  54  days  =  2700 
May26th.,  150X106  "  =15900 
June  10th.,  48X121  "  =  5808 
.Tuly  2nd.,    600x143     "    =85800 


$1,008       $1,008)110208(109  days=June  1st. 

The  quotient,  109  days,  counted  forward  from  Feb.  9th.,  will  give  the  time  for  pay* 
ing  the  whole  debt,  June  1st.,  1839. 

RULE  II. 

When  goods  are  purchased  at  one  date  and  at  a  given  term  of  credit,  and  partial 
payments  have  been  made  before  the  term  of  credit  expires, 

1st.     Multiply  the  whole  debit  into  the  given  term  of  credit. 

2nd.  Multiply  each  payment  made  before  maturity  into  the  time  which  has  inter- 
vened since  the  purchase. 

3rd.  Subtract  the  sum  of  the  products  last  found,  from  the  product  of  the  whole 
debt  multiplied  into  the  given  term  of  credit. 

4tli.  Divide  the  remainder  by  the  balance  of  the  debt  unpaid,  and  the  quotient 
will  be  the  number  of  days  or  months  that  the  balance  of  the  debt  may  run  from  the 
time  of  purchase. 


220  EQUATING  TIME  OF  PAYMENTS. 

EXAMPLE    V . 

Bought  of  Daniel  Buck  &c  Co.,  January  1st.,  1836,  goods  amounting  to  $2,400, 
payable  16  months  from  date.     There  were  payments  made  as  follows,  viz  ; 
In  4  months  X  $200=  800  Whole  debt,  2400 

In  8  months  X    400  =  3200  Term  of  Cr.      16  months. 

In  10  months  X      60=  600  

14400 

660  4600  sum  of  the  products,  2400 


38400  product  of  the  whole  debt 
Whole  debt,  2,400  4600       into  the  whole  ttrra. 

Amoimt  of  payments,        660  

1740)33800(  19-j?  */o  =  19|^  month*. 

1,740  remainder  due.  1740 

16400 
15660 


740 
The  balance,  $1,740,  must  be  paid  about  the  middle  of  July,  1837,  by  equation- 

RULE  III. 

When  two  individuals  have  an  account  one  against  the  other,  of  different  amounts, 
and  the  sums  of  each  are  due  at  different  periods,  to  find  the  equated  time  of  pay- 
ments, 

Ist.     Multiply  the  number  of  days  between  dates,  into  the  smallest  amount. 

2nd.  Divide  the  above  products  by  the  difference  of  the  two  accounts,  and  the 
quotient  will  be  the  answer. 

3rd.  If  the  earliest  date  is  affixed  to  the  largest  amount,  the  quotient  is  counted 
back  from  the  earliest  date. 

4th.  If  the  latest  date  be  affixed  to  the  largest  amount,  the  quotient  is  counted 
forward  from  the  last  date. 

E  X AMPLE    VI  . 

David  Watkinson  &  Co.,  bought  of  James  Bunce,  goods  as  follows,  viz  : 

Days. 
Due  May   1st.,  $200 
Due  May  nth.,  800   XlO=  8000 
Due  May  21st.,  600   X  20  =  12000 
Due  May  31st.,  400   X  30  =  12000 


2,000  )32000(       16  days   added   to   May    Ist.,   gives   the 

2000      equated  time  May,  17th. 

12000 
12000 
D.  Watkinson  &  Co.,  owe  James  Bunce  $2,000,  payable.  May  17th. 

EX  AMP  LE    VII  . 

James  Bunce  bought  goods  of  D.  Watkinson  &  Co.,  as  follows,  viz  ; 

Days. 
$1,100,  due  Aug.   1st.,  $1,100 

600,  due  Aug.  31st.,        600   X  30  =  18000 

800,  due  Sept.  10th.,       800   x40=32000 


2,500=2500)50000(     20  days  added  to  Aug  1st.,  give* 
5000      the  equated  sime  Aug.  21st. 
0000 
Hence,  James  Bunce  owes  D.  Watkinson  &  Co.,  $2,500  on  Aug.  21st. 


EQUATING   TIME  OF  PAYMENTS.  221 

Watkmson  &  Co.  wish  the  $2,000  which  they  owe  James  Bunce,  on  May  17th., 
to  remain  unpaid  till  the  21st.  of  August,  which  will  then  be  canceled  by  the  $2,500 
that  Bunce  will  then  owe  them.  Bunce  assents  to  this  proposal,  provided  the 
balance  of  the  two  accounts,  $500,  can  remain  unpaid  till  the  interest  on  ii  ($500,) 
shall  be  equal  to  the  interest  on  the  $2,000,  from  17th.  May  till  21st.  August.  When 
shall  Watkinson  &  Co.  be  in  cash  for  the  $500 1 

The  foUownig  equation  must  be  worked  by  Rule  4th.,  the  last  tv)o  having  been 
worked  by  Rule  1st.,  in  order  to  form  this  equation. 

EXAMPLE    VIII. 

Watkinson  &  Co.     Dr.  J.  Bunce,  Dr. 

$2,000  due.  May  17th.,  1837.  $2,500  due,  Aug.  21st.,  1837. 

96  number  of  days  between               2,000 
the  two  dates.  


12000  500  Balance  of  the  two  ac'ts. 

18000 


500)192000(384, 
384  days  added  to  Aug.  21st.,  gives  the  time  to  pay  $500,  Sept.  9th.,  1838. 


From  Aug.  21st.,  1837,  till  Sept.  9th.,  1838,  are  384  days  X $2,500=960,000 
From  May  17th.,  1837,  till  Sept.  9th.,  1838,  are  480  daysX   2,000=960,000 

EXAMPLE    IX. 

By  Account-Current  with  P.  A.  Brown,  he  owes  me  $2,000,  which  is  due  Auj 
21st.,  1837,  and  I  owe  him  $2,500,  due,  May  17th.,  1837.     When  shall  I  pay  the  ba 
anceofthe  two  accounts,  ($500,)  that  neither  party  shall  receive  interest  1 
Dr.     P.  A.  B.  N.  H.     Dr. 

Due  Aug.  21st.,     $2,000  Due,  May  17th.,  $2,500 

Difference  of  dates,       96  2,000 


1 2000  500  difference  of  debts. 

18000 


500)192000(384  days  counted  back  from  May  17,  gives  the  equated 
time  April  28th.,  1836. 


From  May  17th.,  1837,  back  to  April  28th.,  1836,  are  384  days  X  2500=96,000 
From  Aug.  21st.,  1838,  back  to  April  28th.,  1836,  are  430  days  X  2000=96,000 
In  this  example.  Brown  is  entitled  to  interest  on  the  amount  I  owe  him,  $2,500, 

from  May  17th.  till  Aug.  21st.,  when  $2,000  of  it  is  canceled  by  what  he  owes  me. 

Then  the  balance,  $500,  was  to  have  been  paid  so  much  earlier,  (April  2nd.,)  as  that 

its  interest  should  be  equal  to  the  interest  on  $2,500,  from  the  17th.  of  May  till  the 

21st.  of  August. 

It  is  unnecessary  to  repeat  examples,  as  the  foregoing  Rules  will  equate  the  time 

on  any  Bills  or  Account-Current. 


EQUATION  OF    DIVIDENDS. 


EQUATION  OF    DIVIDENDS 


A.  B.  &  C.  invest  in  trade  $20,000,  of  which  A.  invests  $8,000,  B.  $7,000,  and 
C.  $5,000.     They  gain  on  their  business  $3,558  00 ;  what  is  each  partners  share  of 
»^  the  gain. 

^  RULE. 

Divide  the  amount  of  gain  by  the  whole  capital  and  the  quotient  will  be  the  per 
cent,  gained ;  multiply  the  per  cent,  gained  by  each  one's  part  of  the  capital  and  the 
quotient  will  be  the  share  required. 

OPERATION. 

$20,000)  355800 

17,79= gain  per  cent. 
17,7,9=per  cent,  gained.  17,7,9=per  cent,  gained. 

8,000 =A's  investment.  7,000 =B's  investment. 


1,423  20=A's  share.  1,245  3=B's  share. 

17,7,9  =per  cent,  gained.  1,423  20=A's  share. 

6,000 =C'8  investment.  1,245  30=B's     " 


889  50  =  C's 


889,5000 =C's  share.  

3,558  00= whole  gain. 
When  Time  is  considered,  multiply  eacb  one's  investment  by  the  time  he  continues  it  in  trade, 
and  use  the  product  for  his  share.    Then  proceed  as  in  the  first  case. 


LOSS    AND    GAIN. 

When  Goods  are  bought  and  sold  at  given  prices,  to  find  the  per  cent,  you  gain 
or  lose. 


After  subtracting  the  difference  between  the  buying  and  the  selling  price,  and 
adding  two  cyphers  to  that  difference,  divide  it  by  the  buying  price.  The  quotient 
will  be  the  per  cent,  that  is  gained  or  lost. 

If  I  buy  goods  at  79  cents  per  yard,  and  sell  them  at  93  cents,  what  do  I  make 
per  cent.  1 

93  selling  price. 
79  buying  price. 

Buying  price,  79)1400    00  added  to  the  difference.    ' 

17t  Ans.     I  make  17  cents  on  each  dollar's  worth  I  buy. 
If  I  buy  goods  at  $3,26  per  yard,  and  sell  them  at  $3,08,  what  per  cent,  do  I  lose  T 
3,26  buying  price. 
3,08  selling  price. 

Buying  price,  3,26)1800    00  added  to  the  difference. 

5t  Ans.     Lose  5  per  cent. 
When  goods  are  to  be  sold,  and  it  is  advisable  to  gain  or  lose  a  certain  per  cent. 


To  gain  a  certain  per  cent. 
Add  the  per  cent,  to  be  gained  to  1,00,  and  multiply  it  into  the  cost  price. 


INTEREST. 

Jf  I  buy  paper  at  $4,44  per  ream,  and  wish  to  sell  it  so  as  to  make  16  per 
what  must  I  sell  it  for  per  ream  1 
444 
116  per  cent,  to  be  gained,  added  to  $1  00. 


2664 
444 
444 


5,15,04  Ans.  $5  15  per  ream. 
To  lose  a  certain  per  cent. 
Subtract  the  per  cent,  you  would  lose,  from  1,00,  and  multiply  the  remainder  into 
the  buying  price. 

If  I  buy  carpeting  at  $1  09  per  yard,  how  much  must  I  sell  it  for  to  lose  2i  per 
centi 

109 
97,5  per  cent,  to  be  lost,  subtracted  from  $1,00  leaves  97,5. 

545 
763 

981 


1,06,275  Ans.  1,06  per  yard. 


INTEREST, 


To  find  interest  at  6  per  cent,  multiply  the  principal  by  1-2  the  even  number  of 
months,  and  1-6  part  of  the  days,  (if  any.) 

What  is  the  interest  on  $500,  for  two  years  and  two  months,  at  6  per  cent.  1 


500  1)26  months. 

13  rate  per  cent.  13  Half  the  even  number  of  months.* 

1500 
500 

65,00  Ans. 
"What  is  the  amount  of  a  note  given  Jan.  16th.,  1835,  and  paid  Jan.  4th.,  1836,  at 
6  per  cent.;  principal  being  $700  ■?    • 
Years.  Months.  Days. 
12         30 


tl836        1  4  TOO  principal. 

1835        1         16  58  rate  interest,  5  cents,  8  mills. 


11         18  5600 

3500 


1)11  30  daya.        40,600  interest  at  6  per  cent, 

^  even  months,     5  -18  days.       700,00     principal. 

6")48  $740,60^0  amount.  Ans. 

1-6  part  of  the  days,     8 

*  When  the  rate  is  6  per  cent,  wc  get  one  cent  on  a  dollar  every  two  months ;  consequently,  9 
cents  for  every  12  months ;  9  cents  for  18  months  ;  12  cents  for  24  montlis.  Hence  one  half  the 
number  of  months  gives  the  rate  per  cent,  for  any  given  time. 

t  The  most  simple  and  expeditious  method  of  finding  time  intervening  between  given  dates,  is 
the  one  pursued  above,  which  is  merely  Compound  Subtractioy. 


224  CUBIC  MEASURE. 

Short  way  offindmg  Interest  for  any  small  number  of  Days. — Multiply  the  whole 
number  of  days  into  the  principal,  and  divide  the  product  by  60. 

EXAMPLE 

What  is  the  interest  on  $4  20,  for  *77  I      And  what  is  the  interest  on  $300,  for 
days  at  6  per  cent  1  j  23  days  at  6  per  cent  1 

420  300 

77  23 


2940  900 

2940  600 


6,0)32:34,0  6,0)690,0 

5,39  Ans.  1,15    Ans. 

This  method  is  adopted  by  many  business  men,  and,  though  it  is  charging  6  per 
cent,  for  360  days  instead  of  365,  it  makes  no  material  difference  except  the  sums  be 
large. 


CUBIC   MEASURE. 

To  find  the  contents  of  Cases,  Bales,  Boxes,  and  any  solid  body ;  Multiply  the  length 
into  the  width,  and  that  product  by  the  height,  the  last  product  will  be  the  answer. 

EXAMPLE . 

How  many  solid  feet  in  a  box  4  feet  wide,  5  feet  long  and  6  feet  high  1 

4  width. 

5  length. 

20 

6  height 

feet  120=^71*. 
How  many  cubic  feet  in  a  bale  which  is  3  feet  6  inches  long,  3  feet  wide,  and  6 
feet  high? 

3,5  length  12)6 

3  width,  ,5=6  inches. 

105 

6  height. 

feet  63,0  Ans. 
How  many  cubic  feet  in  a  box  13  feet  long,  12  feet  3  inches  wide,  and  8  feet  9 
inches  high  1 

12,25  width.  12)3J 

13  length.  ,25=3  inches. 

"3675 
1225 


159  25 
8,75  height  into  12)9  t 

,75=9  inches. 


1393,4375  Ans. 

*  If  the  rate  per  cent,  is  6,  we  get  1  cent  for  every  60  days ;  5  mills  for  30,  (that  is,  one  month ;) 
and  one  mill  for  every  6  days ;  consequently,  we  obtain  the  correct  answer,  whether  we  divide  the 
number  of  days  by  6,  and  make  the  one  sixth  part  of  the  days  the  multiplier,  or  multiply  the  whole 
number  of  days  into  the  principal  and  divide  the  product  by  60. 

t  When  inches  are  given,  as  in  the  above  cases,  multiply  by  the  decimal  of  a  foot. 


CUBIC    MEASURE. 


225 


The  decimal 

expressior 

for  1 

inch 

is 

,083t 

a 

i 

"     2 

inches 

u 

,166t 

« 

<( 
u 

< 
( 

"     3 

"    4 
"     5 
"     6 

u 
(( 
(( 

,25 
,333t 

,416t 
,5 

« 

« 

"     7 

u 

,583t 

it 

( 

»     8 

ti 

,666t 

" 

' 

"    9 

(( 

,75 

« 

< 

"  10 

(( 

,833t 

« 

' 

"  11 

(( 

,916t 

ANOTHER  METHOD  OF  OPERATION. 

How  many  feet  in  a  box  which  is  8   feet  long,  3  feet  4  inches  high,  and  4  feet 
5  inches  wide. 

Feet.  In. 
3_4=:height. 
8-0=length. 


26-8 
4— 5=  width. 


11-1-4 
106-8-0 


117—9—4  number  of  solid  feet. 
I  first  multiply  8  feet  into  4  inches  which =32 -r- 12=2  feet  8  inches. 
I  next  multiply  8  feet  into  3  feet  which =24  feet  +2  feet  8  inches =26  feet  8  inches. 
I  next  multiply  the  4  feet  5  inches,  the  width,  into  the  foregoing  product,  first 
multiplying  5  into  8,  and  dividing  the  product  by  12 — then  5  into  26,  and  dividing 
the  product  by  12.     Next  4  into  8  and  dividing  the  product  by  12,  and  4  into  26, 
which  gives  the  answer  required. 

To  find  the  number  of  square  feet  (length  and  breadth  given)  multiply  the  length 
into  the  breadth.  And  to  find  the  square  yards,  divide  the  above  number  of  feet  by 
9=1  square  yard. 

How  many  square  yards  in  a  piece  of  oil  cloth  carpeting  16  feet  long,  1 1  feet  9 
inches  wide. 

11,75 
16 


7050 
1175 


9)188,00=feet  square. 

20,8= yards  square. 

In  a  piece  of  plastering  14  feet  6  inches,  by  7  feet  6  inches. 
14,5x7,5  =  108,75-^9=12  yards. 

29 


DRAFT    AND    TARE. 


Draft  is  an  allowance  made  in  the  weight  of  goods  for  waste.     The  allowance  for 
draft  at  the  Custom-houses  and  by  merchants  is  as  follows,  viz  • 
lbs.  lbs.    lbs. 

On  112  1 

Over  112  and  less  than  224  2 
"  224  "  "  "  336  .. 
"  336  "  "  "  1120  4 
"  1120  "  "  "  2016  7 
"       2016  9 

An  allowance  for  draft  is  hardly  known  in  any  market  but  in  Boston,  Mass. 
Tare  is  an  allowance  made  for  the  weight  of  the  cask,  box,  or  bag,  which  contains 
.the  merchandise. 

On  some  articles  of  merchandise  the  Tare  is  fixed  by  law  ;  on  others  the  tare  is 
fixed  by  the  custom  of  merchants  and  tradesmen ;  the  former  is  called  the  legal,  and 
the  latter  the  actual  tare. 

The  ad  valorem  rates  of  duty,  upon  goods,  wares,  and  merchandise,  (taken  at  the 
Custom-houses,  one  of  which  is  located  at  every  considerable  seaport)  are  estimated 
by  adding  20  per  cent,  to  the  actual  cost,  if  imported  from  Cape  of  Good-Hope,  or 
from  any  other  place  beyond  the  same,  and  10  per  cent,  on  the  actual  cost  thereof, 
if  imported  from  any  other  place  or  country,  including  all  charges,  commissions, 
outside  packages. 


TARE    ALLOWED    ON    GOODS 


The  following  is  the  Tare 

goods. 

Almonds, 

in  bags,     .     . 

AUum, 

"casks,    .     . 

Candles, 

"boxes,  . 

Chocolate 

ti     It 

Cheese, 

"  baskets, 

Cinnamon 

,     "  mats,     . 
"boxes,    . 

Cloves, 

"  casks,    . 

Corks, 

"  bales,    . 

Cocoa, 

"  casks,    . 

« 

"  bags,      . 

Cotton, 

"  bales,     . 
"  serrons, 

Coffee, 

"bags,     . 

« 

"bales,    . 
"  casks. 

Copperas 

((           u 

Figs,  . 

"  boxfes,  60 
"  drums, 

Glue, " 

"  bales,  . 

Indigo, 

"  barrels. 

« 

"  other  casks 

<( 

"  serrons, 

allowed  at  the  Custom-house,  and  in  buying  and  selling 


3 

per  cent. 

12 

(( 

8 

« 

10 

(( 

10 

(( 

8 

« 

20 

" 

15 

(( 

15 

" 

10 

(( 

1 

« 

2 

<( 

6 

u 

2 

11 

3 

" 

12 

n 

12 

it 

9 

pounds. 

10 

per  cent. 

5 

(( 

12 

(( 

15 

it 

10 

(t 

Nails,      .      in  casks,  . 

8 

per  cent 

Nutmegs,       " 

(( 

12 

« 

Pepper,   .       " 

bags,    . 

2 

(( 

"     .     .       " 

baes,    . 

5 

« 

"     .     .       " 

casks,  . 

12 

« 

Pimento, 

bags,    . 

3 

« 

(C                                   (( 

bales,   . 

5 

(( 

Raisins,   .       " 

boxes,  . 

6 

({ 

((                 (( 

casks,  . 

12 

(( 

Salt,  Glauber," 

" 

8 

« 

Segars,    .       " 

boxes,  . 

18 

" 

Soap,.     .       " 

" 

10 

(( 

Shot,  .     .       " 

casks,  . 

3 

" 

Sugar,      •       " 

"(notloE 

if)  12 

({ 

it          ■       i 

boxes,  . 

15 

(( 

it          .       t 

bags,    . 

5 

« 

Sugar  candy, ' 

boxes,  . 

10 

<( 

Twine,    .       ' 

casks,  . 

12 

(( 

"     .     .       " 

bales,  . 

3 

" 

Tea,   .'     .'       " 

1  chest. 

22] 

rounds. 

"     .     .       " 

h     "    • 

14 

" 

it 

80  lbs.  & 

up- 

wards,  gro 

ss,  20 

(( 

DEFINITIONS 


COMMERCIAL    TERMS. 


Abandonment,  signifies  that  act  by  which 
persons  insured  against  risk,  in  conse- 
quence of  any  particular  damage  or  ac- 
cident, happening  to  the  ship  or  cargo,  re- 
nounce or  abandon  the  property  insured 
to  the  underwriters,  and  call  upon  them 
us  for  a  total  loss,  the  insurers  being  enti- 
tled to  all  that  is  saved. 

Acceptance,  is  a  promise  to  pay  a  draft 
Gccording  to  terms  therein  named,  and 
which  is  signified  by  the  drawee's  writing, 
accepted,  on  the  draft,  together  with  his 
name. 

Accommodation.  A  friendly  agreement, 
among  merchants  and  traders,  to  accept 
and  indorse  bills  and  notes  to  accommo- 
date each  other,  in  order  to  make  them  ne- 
gotiable. 

Account-current,  contains  a  statement 
of  transactions  between  one  person  and 
another,  yet  unsettled,  in  the  form  of  Dr. 
and  Cr.  Accounts-current  are  mostly  kept 
by  agents  with  their  employers,  and  are 
rendered  once  in  6,  or  12  months. 

AccovMt-sales.  A  minute  account*  of 
goods  sold  on  commission,  made  out  by 
the  agent,  and  transmitted  by  post,  or 
otherwise,  to  the  consigner  of  the  same. 

Admeasurement.  The  mode  of  ascer- 
taining the  exact  quantity  of  any  commo- 
dity, work  done,  &c. 

Advance.  Money  paid  on  goods  con- 
signed, before  they  have  been  sold. 

Adventure.  When  a  person  sends  goods 
abroad  to  be  sold,  on  his  own  account 
and  risk. 

Agent.  A  person  appointed  to  trans- 
act business  for  another.  Any  person  may 
draw,  accept,  or  indorse  bills  through  his 
agent.  Where  a  man  pays  money 
through  his  agent  which  ought  not  to  be 
paid,  either  the  agent  or  employer  may 
recover  it. 

Agreement.  An  agreement  is  a  mem- 
orandum, article,  minute,  importing  the 
consent  or  concurrence  of  two  or  more 
persons,  the  one  in  disposing  of,  the  other 


in  receiving  property.  Idiots,  lunatics, 
married  women,  and  infants,  (except  for 
necessaries,)  and  persons  under  any  kind 
of  duress,  are  incapable  of  entering  into 
an  agreement. 

Assignee.  A  person  appointed  by  a 
bankrupt  to  manage  his  affairs. 

Affidavit,  signifies  an  oath  in  writing, 
sworn  in  the  presence  of  one  who  is  duly 
authorized  to  take  the  same. 

Assignment.  An  assignment  is  an  ab- 
solute transfer  of  all  the  interest  the  as- 
signor has  in  the  property  assigned. 

Authority.  A  delegated  power,  by 
which  one  party  authorizes  another  to  act 
generally  or  specially  in  his  name.  This 
pow^er  may  be  given  verbally  or  in  writing, 
the  latter  mode  being  preferable. 

Balance  of  Trade.  This  term  is  a{)- 
plied  to  money  balances,  to  be  paid  by  one 
nation  trading  and  carrying  on  business 
with  another.  So  far  as  the  articles  expor- 
ted and  imported  pay  for  each  other,  there 
is  no  balance,  but  on  which  side  the  ex- 
ports fall  short  in  their  amount,  that  nation 
is  said  to  have  the  balance  of  trade  against 
it,  and  vice  versa. 

Balance,  is  in  Book-keeping,  the  differ- 
ence between  two  sides  of  an  account  in 
the  Ledger 

Bankrupt.  -A  merchant,  or  trader,  who 
is  unable  to  pay  his  debts. 

Bill  of  Exchange.  An  order,  or  request 
in  writing,  addressed  to  another  person,  to 
pay  a  certain  sum  of  money  on  demand, 
or  at  a  time  therein  specified,  to  a  third 
person,  or  to  his  order ;  or  it  may  be  made 
payable  to  the  bearer. 

Bill  of  Entry.  A  written,  and  minute 
list  of  goods,  imported,  to  be  given  in  to 
the  Custom-house. 

Bank  Credit,  is  when  an  agreement 
exists  between  persons  to  draw  on  each 
other,  at  any  time,  for  certain  amounts  of 
money. 

Bond.  A  bond  or  obligation,  is  a  deed 
whereby  the   obligor,  binds  himself,   his 


228 


DEFINITIONS    OF    COMMERCIAL   TERMS. 


heirs,  executors,  and  administrators,  to  pay  a  debtor  and  creditor,  to  accept  a  certain 


a  certain  sum  of  money,  to  anotiier,  at  an 
appointed  day. 

Bill  of  hading.  A  document  given  by 
the  master  of  a  vessel,  acknowledging  the 
receipt  of  certain  goods  shipped  on  board, 
whereby  the  contract  to  deliver  the  same 
in  good  order  and  condition,  at  the  port  of 
consignment. 

Bottomry  or  Respondentia.  Bottomry 
is  a  contract,  in  nature  of  a  mortgage,  of 
a  ship,  in  which  the  owners,  borrow  money 
to  enable  them  to  (it  out  a  ship,  or  to  pur- 
chase a  cargo  for  a  voyage  proposed  :  in 
case  the  ship  or  cargo  is  lost,  the  lender 
looses  his  money,  according  to  the  tenor 
of  the  contract.  In  case  of  safe  arrival, 
the  lender  is  entitled  to  the  lent  money 
and  marine  interest,  being  more  than  com- 
mon interest. 

Brokers^  Ejcchangc.  Exchange  brokers, 
lire  those  whose  business  is  to  transact 
details  attending  the  negotiation  of  bills  of 
exchange,  buying  and  selling  bullion,  and 
foreign  and  provincial  bank  notes.  A 
broker  by  knowing  the  mutual  wants  of 
merchants,  is  an  useful  intermediate 
agent. 

Brokers^  Insurance.  ^  Their  business  is 
to  insure  ships  and  merchandise  from  the 
jjcrils  of  sea,  and  to  settle  the  lo.sses  and 
average  that  may  occur. 

Broker:}^  Ship.  Those  employed  in 
buying  and  selling  ships,  either  by  private 
contract,  or  public  sale. 

Brokerage.  A  certain  per  cent,  paid, 
on  the  purchase  or  sale  of  goods,  bank, 
insurance,  and  stocks,  &c. 

Carrier.  Every  person  carrying  goods 
for  hire,  and  a  stipulated  sum,  is  called  a 
carrier,  and  as  such,  he  is  liable  for  any 
loss  or  damage  that  may  happen  to  them, 
while  in  his  custody. 

Circular  Letters.  Notices  sent  abroad 
by  merchants,  on  commencing  or  closing 
their  business,  or  making  alteration  in  the 
same. 

Commerce.  The  exchange  of  what  is 
superfluous,  for  that  which  is  necessary. 
The  articles  termed  necessaries  of  life, 
wanted  by  all  men,  and  the  most  part  of 
which  are  produced  in  all  parts,  are  easily 
exchanged  by  way  of  barter. 

Cocket.  A  certificate  given  at  the  Cus- 
tom-house, signifying  that  the  duty  has 
been  paid  on  certain  goods,  entered  for 
exportation. 

Commission.  The  percentage  allowed 
by  the  merchants  and  traders  to  their  cor- 
respondents and  agents,  for  transacting 
the  business  intrusted  to  their  care. 

Composition.      An  agreement  between ' 


sum  in  discharge  of  all  demands. 

Consideration.  The  money  or  other 
beneficial  act  done  towards  or  paid  to  an- 
other, for  which  a  certain  equivalent  be- 
neficial advantage  is  to  be  communicated. 
Consul.  An  officer  established  by  vur- 
tue  of  a  commission  from  all  foreign 
countries,  and  whom  nations  permit,  either 
from  custom  or  treaty,  to  reside  in  other 
territories. 

Contract.  An  agreement  between  two 
or  more  persons,  founded  upon  some  law- 
ful consideration.  Every  contract  ought 
to  be  full,  certain,  and  complete. 

Contraband  Goods.  Such  goods  as 
masters  of  vessels  may  not  take  on  board  ; 
they  being  prohibited  to  be  exported,  by 
the  positive  law  of  the  country,  and  when 
disregarded,  the  ship  or  cargo,  is  liable  to 
forfeiture  or  confiscation. 

Copartnership,  is  when  two  or  more 
persons  unite  together,  and  agree  to  parti- 
cipate in  profit  and  loss,  according  to  their 
respective  shares  in  a  joint  stock. 

Circulating  Medium.  A  term  imply- 
ing money,  or  whatever  circulating  be- 
tween man  and  man,  serves  for  payment 
in  commerce.  Bank  notes,  and  all  bills 
payable  on  demand,  come  under  this  head  ; 
but  bills  payable  at  a  fixed  period  do  not, 
although  in  reality,  they  answer  tlic  pur- 
pose of  a  circulating  medium. 

Course  of  Exchange.  The  current 
price  of  exchange  on  bills  drawn  and  sold 
by  individuals  in  one  country  on  those  of 
another. 

Consols.  Consolidated  annuities,  pro- 
duced by  £4,000,000  of  British  Stocks. 
(See  page  208.) 

Custom-house,  is  where  a  record  of 
goods  imported  is  kept,  and  the  duties  im- 
posed by  law  are  paid. 

Curreney.  The  value  for  which  the 
money  of  any  particular  country  will  pass 
or  circulate,  which  varies  in  different 
places. 

Days  of  Grace.  Certain  days  after  the 
time  limited  by  the  bill,  which  the  ac- 
ce^ptor  has  a  right  to  demand  in  payment 
of  the  same.    (See  page  53.) 

Damages.  The  compensation  given  by 
a  jury  for  any  injury  which  a  plaintiff  has 
sustained. 

Debenture.  A  certificate  delivered  at 
the  Custom-house,  when  the  exporter  of 
any  goods  or  merchandise,  has  complied 
with  the  regulations  prescribed  by  certain 
acts  of  Congress,  in  consequence  of  which 
he  is  entitled  to  a  bounty,  or  drawback 
on  their  exportation. 

Dishonor.      A  bill  is  said  to  be  dishon- 


DEFINITIONS    OF    COMMERCIAL   TERMS. 


229 


ored,  when  the  person  on  whom  it  is 
drawn,  does  not  accept  or  pay  it. 

Demand,  is  calling  on  a  man  for  a  sum 
of  money  or  any  other  thing  due. 

Discaunt,  is  an  allowance  made  upon 
prompt  payment,  in  the  purchase  of  goods  ; 
also  the  interest  allowed  in  advancing 
money  upon  bills  not  mature. 

Dividend.  A  particular  portion  of 
property. 

Demurrage.  An  allowance  made  to 
the  master  of  a  ship,  by  his  freighters, 
by  being  detained  in  port  longer  than  the 
time  appointed  and  agreed  for  his  depar- 
ture. 

Dock,  where  ships  are  built,  repaired, 
laded,  and  unladed. 

Drawee.  The  person  on  whom  a  fo- 
reign or  inland  bill  is  drawn. 

Duty.  A  certain  per  cent.,  fixed  by 
law,  to  be  paid  on  all  goods  exported  or 
imported. 

Earnest,  is  the  money  advanced,  to 
bind  the  parties  to  the  performance  of  a 
verbal  agreement. 

Effects,  are  value  in  money,  merchan- 
dise, real-estate,  debts,  &.c. 

Exchange,  is  paying  or  receiving  money 
m  one  country  for  a  like  sum,  in  another, 
by  means  of  bills  of  exchange. 

Emporium.  A  commercial  city,  where 
merchandise  is,  to  a  great  extent,  exported 
and  imported. 

Failure.  A  person  is  said  to  fail  or 
become  insolvent,  when  he  is  unable  to 
pay  his  debts. 

Factor.  A  merchant,  agent,  or  corres- 
pondent, residing  abroad ;  and  in  some 
cases,  constituted  by  a  letter  of  attorney, 
to  sell  goods  and  merchandise. 

Finances.     Public  revenues,  or  income. 

Firm,.  Two  or  more  persons  engaged 
m  mercantile  business,  are  called  a  firm. 

Forestalling,  is  buying  goods  before 
they  reach  the  usual  market,  in  order  that 
the  buyer  may  sell  them  at  an  exorbitant 
price. 

Freight.  The  money  paid  for  the  car- 
riage of  goods,  it  is  sometimes  taken  for 
the  burden,  or  the  cargo  of  the  ship. 

Guarantee,  a  power  that  agrees  to  cer- 
tain stipulations  fulfilled. 

Honor,  is  applied  to  a  draft,  when  it  is 
accepted,  or  paid  by  the  drawer — it  is  then 
said  to  be  honored. 

Importation.  When  goods  are  brought 
from  one  country  to  another,  they  are  said 
to  be  imported. 

Inventory.  A  detailed  account  of  a 
person's  effects. 

Insurance,  Marine.  Insurance  is  an 
indemnity,  whereby  one  party  in  conside- 


ration of  a  stipulated  sum,  undertakes  to 
indemnify  the  other  against  some  specific 
loss,  to  which  he  is  exposed  at  sea. 

Invoice,  an  account  of  goods  sent  off, 
either  to  order,  or  consigned,  with  the 
valuation,  &c. 

Indorsement,  a  term  usually  applied  to 
the  holder  of  a  negotiable  instrument, 
when  he  assigns  his  interest  in  the  same, 
to  some  third  person,  by  signing  his  name 
to  the  back  of  the  instrument. 

Interest  of  money,  is  the  premium  paid 
for  the  sum  loaned. 

Interest,  Compound,  or  interest  upon  in- 
terest, is  when  the  interest  instead  of  be- 
ing paid  is  added  to  the  capital  sum,  and 
becomes  an  increased  capital. 

Law,  Commercial.  A  system  of  cus- 
toms acknowledged,  by  all  commercial 
nations,  and  constitute  a  part  of  the  ge- 
neral law  of  the  land. 

Lease.  A  written  agreement,  which 
secures  to  the  holder,  the  use  of  certain 
houses  or  lands,  for  the  term  specified 
therein. 

Letter  of  Credit,  is  one  which  entitled 
the  holder  to  draw  a  specified  amount  of 
money  on  account  of  the  giver. 

Laws  of  Nations.  A  system  of  rules 
deducible  by  natural  reason,  from  the  im- 
mutable principles  of  natural  justice,  and 
established  by  universal  consent,  among 
the  civilized  inhabitants  of  the  world. 

License.  A  privilege  from  proper  au- 
thority, to  carry  on  a  certain  business  for 
which  the  holder  pays  a  duty. 

Manifest.  An  account  which  a  captain 
of  a  vessel  must  give  of  the  goods,  he 
brings  into  port,  before  they  can  be  landed. 

Mart.  A  place  of  public  sales  and  pur- 
chases. 

Maratime  Laws,  relate  to  branches  of 
commerce  carried  on  by  sea. 

Maximum  and  Minimum,  the  former 
signifies  the  greatest  and  the  latter  the 
smallest  piece  of  any  saleable  property. 

Mint,  is  the  place  where  bullion  is  coin- 
ed, under  the  supervision  of  government, 
for  commercial  purposes. 

Merchant,  a  person  who  traffics  in  com- 
modities, or  buys  and  sells  in  gross. 

Monopoly,  when  a  man  gets  commodi- 
ties into  his  hands  in  such  a  manner  as 
that  none  can  sell  or  get  gain  on  them  ex- 
cept himself. 

Money,  Real.  Gold  and  silver  coins, 
rendered  current  at  a  certain  value  by  au- 
thority of  states  (See. 

Motley,  Imaginary.  Denominations  used 
to  express  sums  of  money  which  have  no 
real  species,  as  the  pound,  &c  (See  page 
215.) 


230 


DEFINITIONS   OF    COMMERCIAL   TERMS. 


Non-claim^  where  the  creditor  cannot 
enforce  his  claim,  in  consequence  of  not 
making  it  seasonably. 

Neutrality.  A  state  not  engaged  in 
alliance  with  either  of  the  belligerent  pow- 
ers, is  called  neutral. 

Neutral  Ships,  are  those  belonging  to 
nations  which  remain  neutral,  in  regard  to 
belligerent  powers. 

Obligee,  he  to  whom  a  bond  is  made 
payable. 

Obligor,  the  person  who  is  bound  to  pay 
the  obligee. 

Payment,  is  the  purchase  money  for 
goods,  to  be  made  by  the  buyer  to  the  sel- 
ler, as  agreed  upon. 

Pilot.  A  person  taken  on  board  at  a 
particular  place,  for  the  purpose  of  con- 
ducting a  ship  through  a  river,  road,  or 
channel,  or  from  port  to  port. 

Policy  of  Assurance,  the  instrument, 
that  binds  the  insurers  to  pay,  in  case  of 
loss. 

Premium.  Money  paid  for  insuring 
property  against  losses. 

Promissory  Note.  A  written  promise 
to  pay  a  specific  sum  of  money,  at  a  cer- 
tain time. 

Protest.  If  a  bill  is  refused  acceptance 
or  payment  when  due,  it  is  handed  to  the 
notary  public  who  protests  it. 

Price-current.  A  narration  of  the 
goods  in  market,  with  their  selling  price 
affixed  to  them. 

Primage.  A  certain  per  cent,  on  the 
amount  of  freight,  allowed  to  the  captain 
of  the  vessel. 

Qnarantine.  The  time  appointed 
for  a  vessel  arriving  from  any  country, 
infected  with  any  contagious  disease,  to 
remain  in  certain  limits,  until  it  is  without 
danger  of  infection. 

Rebate.  The  per  cent,  allowed  to  the 
purchaser  of  goods,  for  prompt  payment. 

Respondentia,  is  where  goods  are 
pledged  to  obtain  money,  as  in  bottomry, 
on  the  security  of  the  vessel. 

Retail.  Buying  and  selling  goods,  on 
on  a  small  scale. 

Returns.  When  money  or  goods  are 
sent  to  the  consigner,  by  the  consignee. 

Remittance.  The  payment  of  money 
in  one  country,  to  another  party  in  another 
country,  or  at  a  distance  by  bills  of  ex- 
change, or  orders. 

Sample.  A  specimen  of  commodity 
for  sale. 


Salvage.  A  certain  sum  allowed  those 
who  have  saved  property  from  the  perils 
of  sea  and  fire. 

Searcher.  An  officer  appointed  to 
search  vessels  bound  outward,  for  contra- 
band or  uncustomed  goods. 

Sea-worthy.  A  ship  is  said  to  be  sea- 
worthy, when  she  is  every  way  fitted  for 
her  voyage. 

Smuggling.  Importing  or  exporting 
goods,  without  paying  custom-house  du- 
ties. 

Staple  Goods.  The  principal  produce 
of  a  country. 

Stopping  Goods  in  Transitu,  is  when 
the  consigner  suspects  the  credit  of  the 
consignee,  having  his  goods  on  the  way, 
prevents  their  finally  reaching  the  con- 
signee. 

Supercargoes,  are  persons  employed 
by  commercial  companies  or  private  mer- 
chants, to  take  charge  of  the  cargoes,  they 
export  to  foreign  lands,  to  sell  the  same, 
to  purchase  for  returns,  &c. 

Stock.  Money  raised  by  a  -company, 
to  be  employed  in  trade.    (See  page  149.) 

Tare.  A  deduction  made  to  purchasers 
for  weight  of  the  box,  cask,  or  sack,  in 
which  goods  may  be  sent. 

Trade,  is  used  in  many  cases  to  signify 
commerce  ;  also,  manufacturing  and  traffic 
of  goods. 

Tellers.  Persons  employed  in  Banks, 
Exchange  offices,  &c.,  to  receive  and  pay 
money. 

Tonnage.  The  capacity  of  a  vessel  to 
stow  and  transport  goods,  determined  by 
admeasurement. 

Underwriters.  Individuals  or  com- 
panies, who  insure  any  property  against 
losses  or  damages. 

Usance.  A  certain  period  after  the  date 
of  a  foreign  bill,  limited  for  its  payment,  ac- 
cording to  the  custom  of  the  places  re- 
spectively, through  which  the  exchanges 
pass  ;  double  usance,  is  double  the  accus- 
tomed time ;  and  half  usance  is  half  the 
time. 

Value,  has  two  meanings.  When  it 
expresses  the  utility  of  an  object,  it  may 
be  called  value  in  use  ;  when  the  power  of 
purchasing  other  goods,  value  in  exchange. 
Usury,  is  receiving  a  higher  interest 
for  the  loan  of  a  sum  of  money,  than  is 
allowed  by  the  laws  of  the  country,  where 
the  transactions  occur. 


HARTFORD   COMMERCIAL  ACADEMY. 

162\  Main-Street. 


The  design  of  this  School  is  to  quahfy  young  men  for  the 
Counting-Room,  in  a  superior  and  eocpeditious  manner. 

The  following  branches  are  taught  upon  the  most  approved  plan, 
by  the  lesson  or  quarter  of  eleven  weeks,  viz : 

PENMANSHIP. 
Individuals  by  spending  a  short  time  in  this  School,  may  ac- 
quire a  free,  flowing,  and  elegant  style  of  writing. 

COMMERCIAL  ARITHMETIC. 
Young  men  who  have  neglected,  or  wish  to  review,  the  Arithme- 
tic, may,  in  a  short  period,  acquire  simple  and  expeditious  methods 
of  performing  the  various  computations  in  business. 

BOOK-KEEPING  by  SINGLE  and  DOUBLE-ENTRY. 
Individuals  now  in  business,  or  those  who  are  anticipating  it,  are 
here  qualified  to  act  as  Book-keepers  in  the  most  responsible  situa- 
tions. The  learner  is  instructed  in  the  most  approved  methods  of 
classifying  merchants'  accounts,  and  of  opening,  closing,  and  re- 
opening books  in  every  variety  of  business. 

MERCANTILE  CORRESPONDENCE. 
Pupils  in  this  branch,  will  be  made  familiar  with  composing  all 
the  forms  of  bills,  &c..  useful  in  the  routine  of  business. 

N.  B.  Young  men  engaged  through  the  day,  can  take  lessons  in 
the  evening  or  morning,  in  separate  apartments.  Lessons  in  the 
Ancient  and  Modern  languages,  and  Surveying,  will  be  heard. 
Merchants'  Books  written  up,  and  disputed  and  complicated  ac- 
counts adjusted. 

N.  HARRIS.  Principal. 


References. 

Gov.  Ellsworth,  Hon.  Thomas  Day, 

Rev.  Dr.  Hawes,  Thomas  K.  Brace,  Esqs. 


TESTIMONIALS 


The  names  affixed  to  the  following  certificate,  are  selected 
from  the  many  which  have  been  received,  testifying  to  the  merits 
of  this  work. 

"Having  examined  the  "System  of  Practical  Book-keeping," 
by  Mr.  N.  Harris,  Principal  of  the  Hartford  Commercial 
Academy,  we  do  not  hesitate  to  recommend  it  to  the  patronage  of 
the  public,  believing  it  to  be  better  adapted  to  the  purposes  of 
instruction  than  any  work  of  the  kind  with  which  we  are  ac- 
quainted, and  containing  a  more  full  and  complete  definition  of 
the  various  Books  and  Terms  used  in  mercantile  business." 


H.  A.  PERKINS, 

Cashier,  Hartford  Bank 

HIRAM  RIDER, 

State  Treasurer, 

Z.  PRESTON, 

Firm  of  William  H.  Imlay  4  Co, 

H.  ALDEN, 

Cashier,  Conn.  River  Banking  Co. 

S.  L.  LOOMIS 

Secretary,  JEtna  Insurance  Co. 

O.  ALLEN 

Book-keeper,  Savings  Bank. 

JAMES  BOLTER, 

Firm  of  Hills  6f  Bolter. 

E.  A.  PECK, 

Firm  of  Smith  4  Peck 


S.  p.  TEACHER, 

Firm  of  J.  Olmsted  ^  Co. 

V.  A.  BAYLEY, 

Firm  of  J.  M.  Bunce  &  Co. 

E.  W.  COLEMAN, 

Firm  of  Richmond  <5-  Coleman. 

D  HILLYER, 

Secretary,  Collins^  Manufacturing  Co. 

JOHN  H.  STRONG, 

Agent,  Windsor  Manufacturing  Co, 

FRANCIS  FELLOWS, 

Late  Principal  Mount  Pleasant  School. 

W.  N.  MATSON, 

Late  Principal  Hartford  Grammar  School. 

S.  SPENCER  &  SON. 


^■- 


1^ 


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THIS  BOOK  IS  DUE  ON  THE  LAST  DATE 
STAMPED  BELOW 


AN     INITIAL     FINE     OF     25     CENTS 

WILL  BE  ASSESSED  FOR  FAILURE  TO  RETURN 
THIS  BOOK  ON  THE  DATE  DUE.  THE  PENALTY 
WILL  INCREASE  TO  50  CENTS  ON  THE  FOURTH 
DAY  AND  TO  $1.00  ON  THE  SEVENTH  DAY 
OVERDUE. 


OCT      5  1932 

FEB    7  195i 
N0V15195A  !!j 
FEB     71955 

,      5  Nov'57FC 

REC'D  LD 

JAN    3  1958 


LD  21-50m-8,32 


'   "^      C^^JC-yW^ 


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,       1118H 


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